TReDS will bring about faster financing for MSMEs & improve their liquidity conditions: R Gandhi

Mumbai, Nov 25 (KNN) Trade Receivables Discounting System (TReDS) will bring about faster financing of micro, small and medium enterprises (MSMEs) and improve their liquidity conditions, said R Gandhi, Deputy Governor of RBI.

He was addressing the 33rd Sir Purshotamdas Thakurdas Memorial Lecture in Mumbai on Thursday on Pioneering Best Practices in Banking: India’s Record.

Talking about the Payment System, Gandhi said robust payment system is an essential element of financial inclusion. As per various recent Global Payments Reports, India stands among the select few countries who have already undertaken about 50 per cent of the journey towards modernizing and digitizing its payment infrastructure.

Gandhi said the Reserve Bank has been at the forefront in adoption of technology and modernising payment systems.

He said Bharat Bill Payment System (BBPS) seeks to integrate bill payments for various utility services which are repetitive in nature and bring interoperability in bill payments eco-system bringing both banks and non-banks under its fold. It will provide the convenience of anytime, anywhere, any bill payment facility to the users.

Similarly, setting up of the Trade Receivables Discounting System (TReDS) platform is another initiative which will facilitate the discounting of both invoices as well as bills of exchange, is another example of adoption of modern payments systems to bring about faster financing of MSMEs and improve their liquidity conditions, Gandhi noted.

The RBI Deputy Governor also highlighted that the Payment System Vision Document 2016-18 further aims at ‘less-cash society’ with reduction in the share of paper-based clearing instruments, consistent growth in individual segments of retail electronic payment systems, viz., NEFT, IMPS, card transactions and mobile banking, increase in the registered customer base for mobile banking, significant growth in acceptance infrastructure and accelerated use of Aadhaar in payment systems. (KNN Bureau)