M1 exchange transacts with NTPC to facilitate financing of MSME vendors in power sector
New Delhi, Oct 24 (KNN) To facilitate financing between NTPC and its MSME vendors, M1 exchange, one of the foremost exchanges dealing in Trade Receivables Discounting System (TReDS), has started transacting with NTPC limited.
With conjunction of M1xchange and NTPC Limited, the financing concerns of MSMEs in the power sector would be taken care off.
In a press statement, M1xchange said “The use of TReDS is aimed at improving the flow of funds to MSMEs by reducing the realization cycle of receivables.”
TReDS allows MSMEs to post their trade receivables on the system and get them financed,” it added.
Launched by outsourcing and consulting firm Mynd Solutions, M1xchange has on-boarded many large corporates, their MSME vendors and financiers (banks - public, private, foreign and NBFCs) to do the financing transactions.
“The M1xchange platform would provide a reliable tool to our vendors due to its competitive pricing mechanism,” SC Chavady, GM, corporate materials, NTPC, said in the statement.
TReDS is a regulatory framework put in place by the Reserve Bank of India under the Payment and Settlement Systems Act 2007 to regulate trade receivables between MSMEs, large corporations and financiers