Credit and Finance for MSMEs: BSE-owned IT solutions provider for the broking community BSE Technologies (BSE Tech) on Tuesday said it received in-principle approval from the Reserve Bank of India (RBI) for setting up and operating Trade Receivables Discounting System (TReDS) under the Payments and Settlement Systems Act, 2007 to help MSMEs manage their working capital through the TReDS platform. TReDS as a concept was introduced in 2014 by RBI and later in 2017, three platforms including M1Xchange promoted by Mynd Solutions, Invoicemart (a joint venture of Axis Bank and mjunction services), and RXIL (joint venture between SIDBI and NSE) were issued licenses to operate on TReDS mechanism.

The online platform allows invoice discounting for MSMEs from government buyers including government departments, public sector units, private buyers including corporates. BSE Tech said TReDS business of BSE will commence only after the receipt of final approval and certificate of license from RBI. “BSE Tech will now have the capability to provide an option to MSME to manage their working capital more efficiently through the TReDS platform. BSE is always at the forefront in creating the ecosystem around MSMEs and keeping this in view we are widening our product offering to MSMEs. We are hopeful with the launch of this TReDS platform the financing issues of MSMEs will be better addressed and contribute to their growth,” Ashishkumar Chauhan, MD & CEO, BSE said in a statement.

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BSE Tech focuses on commodities, banking and financial services markets in India to provide multiple solutions including clearing and settlement system, back-office operations, maintenance of client records, bulk mailers, payment gateway, etc. In July this year, in order to help MSMEs tide over their delayed payments issue, the Parliament had passed the Factoring Regulation (Amendment) Bill. According to the government’s delayed payments monitoring portal MSME Samadhaan, over 91,000 such applications involving Rs 24,339 crore have been filed by micro and small enterprises (MSEs) since the launch of the portal in October 2017, of which 9,490 cases have been disposed.