RBI governor Shaktikanta Das has announced the expansion of the scope of Trade Receivables Discounting System (TReDs). TReDS 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).
• Sellers, buyers and financiers are the participants on a TReDS platform.
• For the benefit of MSMEs, the Reserve Bank had introduced a framework in 2014 to facilitate financing of their trade receivables through Trade Receivables Discounting System (TReDS).