send mail to support@abhimanu.com mentioning your email id and mobileno registered with us! if details not recieved
Resend Opt after 60 Sec.
By Loging in you agree to Terms of Services and Privacy Policy
Claim your free MCQ
Please specify
Sorry for the inconvenience but we’re performing some maintenance at the moment. Website can be slow during this phase..
Please verify your mobile number
Login not allowed, Please logout from existing browser
Please update your name
Subscribe to Notifications
Stay updated with the latest Current affairs and other important updates regarding video Lectures, Test Schedules, live sessions etc..
Your Free user account at abhipedia has been created.
Remember, success is a journey, not a destination. Stay motivated and keep moving forward!
Refer & Earn
Enquire Now
My Abhipedia Earning
Kindly Login to view your earning
Support
Context: In a conference at the Payment System Operators (PSO)in Kochi RBI Governor Shaktikanta Das informed that the electronic platform Trade Receivables Discounting System (TReDS) — introduced by the Reserve Bank of India (RBI) in 2014 for MSMEs to finance or discount their invoices — finances around 35,000 factoring units (FUs) per month.
It is an electronic platform for facilitating the financing/discounting of trade receivables of Micro, Small, and Medium Enterprises (MSMEs) through multiple financiers.
These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
Purpose: To allow MSME sellers to discount invoices raised against major corporations, which helps them manage their working capital demands. The platform enables MSMEs to receive payments more quickly.
Sellers, buyers, and financiers are the participants on a TReDS platform.
Only MSMEs can participate as sellers in TReDS.
Corporates, Government Departments, PSUs, and any other entity can participate as buyers in TReDS.
Banks, NBFC - Factors, and other financial institutions, as permitted by the RBI, can participate as financiers in TReDS.
RBI has not made it compulsory for any buyer, seller, or financier to participate in TReDS.
The Government has made it compulsory for certain segments of companies to mandatorily register as buyers on the TReDS platform(s). The government directive, however, does not make it compulsory for these entities to perform transactions in TReDS.
Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices/bills of exchange.
Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
Bidding by financiers;
Selection of best bid by the seller or the buyer, as the case may be;
Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing/discounting;
Payment by the buyer to the financier on the due date.
Trade receivables are defined as the amount owed to a business by its customers following the sale of goods or services on credit.
By: Shubham Tiwari ProfileResourcesReport error
Access to prime resources
New Courses