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TReDS Platform Reaches INR 1 Tn Milestone In MSME Invoice Financing

Updated: May 18, 2024 02:24:48pm

TReDS Platform Reaches INR 1 Tn Milestone In MSME Invoice Financing

New Delhi, May 18 (KNN) The Receivables Exchange of India Limited's (RXIL) Trade Receivables Discounting System (TReDS) platform has facilitated financing of over 50 lakh invoices worth Rs 1,00,000 crore since its inception.

This landmark achievement underscores RXIL's commitment to providing accessible working capital financing solutions to Micro, Small, and Medium Enterprises (MSMEs) in India.

MSMEs play a pivotal role in driving economic growth in the country, contributing over 30 per cent to India's Gross Domestic Product and employing approximately 12 crore individuals.

However, the sector faces an estimated credit gap of around Rs 28.2 lakh crore, hindering its growth potential. Digital platforms like TReDS have emerged as instrumental solutions in bridging this financing gap, offering tailored financial services that enable MSMEs to gain timely access to capital at competitive rates.

In the fiscal year 2024, RXIL witnessed substantial growth in monthly invoice financing volumes, currently facilitating over Rs 6,000 crore in financing each month.

Looking ahead, the platform aims to finance Rs 75,000 crore worth of invoices in the upcoming fiscal year 2025, further reinforcing its dedication to fostering the growth and prosperity of MSMEs nationwide.

The TReDS platform boasts a robust ecosystem, with over 25,000 registered MSMEs, highlighting its significant contribution to bolstering small businesses across India.

RXIL has also forged strategic partnerships with various state governments through Memorandums of Understanding (MoUs), ensuring timely payments to MSMEs at highly competitive rates.

Operating without recourse to MSMEs, the TReDS platform provides businesses with the advantage of timely working capital and risk-free financing against their invoices to corporate buyers, Central Public Sector Enterprises (CPSEs), Public Sector Undertakings (PSUs), and more.

Despite the platform's success, only 82,000 MSMEs are currently registered on all TReDS platforms out of the 4 crore MSMEs registered on the Udyam portal, indicating substantial room for expansion.

RXIL remains steadfast in its mission to bridge the gap between MSMEs and financial institutions, ensuring that every business, regardless of geographical location or size, has access to timely working capital.

Receivables Exchange of India Limited (RXIL) was established as a joint venture of SIDBI, NSE, State Bank of India, ICICI Bank, and Yes Bank, and launched India's inaugural Trade Receivables Discounting System (TReDS) platform under the regulatory framework of the Reserve Bank of India.

(KNN Bureau)


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