The Reserve Board of India (RBI) on Tuesday gave in-principle approval to three applicants to set up and operate Trade Receivables Discounting System (TReDS). The in-principle approvals have been given to NSE Strategic Investment Corporation Limited (NSICL) and Small Industries Development Bank of India (SIDBI), Axis Bank and Mynd Solutions.
TReDS will allow SMEs to post their receivables on the system and get them financed. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time, the Reserve Bank of India said in a release on Tuesday. fe Bureau