New Delhi, Jul 3 (KNN) Amid crippled economy due to COVID-19 pandemic, finally Micro, Small and Medium Enterprises (MSMEs) got a chance to cheers as Department of Financial Services (DFS) has exempted the sector from the charges and fees registration on all the three platforms of Trade Receivables Discounting System (TReDS).

The three TReDS platforms are M1xchange, RXIL, and A.TReDS.

''As per the confirmation received from DFS, the charges and fees registration on all the three TREDS platforms have been exempted for MSMEs. Accordingly, MSMEs may be encouraged to register on these platforms,'' a person aware of the development told KNN India.

In last month June, M1xchange too had announced to offer free registration to MSMEs on TReDS platform.

'The Government has announced various initiatives for reviving the MSMEs. As a small gesture, we at M1xchange are waiving off the registration fee on our M1xchange TReDS platform till the month of September 2020,'' said Abhay Singh Rathore, Vice president, M1xchange.

''If you register before September 30th, 2020, you can register with us without any payment,'' he added.

In the same month, Small Industries Development Bank of India (SIDBI) said that it had set up a fund to support free onboarding for MSMEs TReDS.

The fund, Swavalamban Crisis Responsive Fund, is an open-ended fund and the target is to onboard 10,000 MSMEs during the period, a SIDBI spokesperson said.

"The present endeavour aims at offering relief to the MSMEs during these challenging times. We are hopeful that MSMEs shall maximise this opportunity to on board TReDS, thus getting much-needed breather from severely crunched cash flow," SIDBI Chairman and Managing Director Mohammad Mustafa said.

Usually, an MSME has to pay a fee of Rs 5,000 to Rs 10,000 for getting registered on a TReDS platform.