Credit and Finance for MSMEs: BSE-owned IT options provider for the broking neighborhood BSE Technologies (BSE Tech) on Tuesday mentioned it received in-principle approval from the Reserve Bank of India (RBI) for setting up and operating Trade Receivables Discounting System (TReDS) below the Payments and Settlement Systems Act, 2007 to enable MSMEs handle their working capital by way of the TReDS platform. TReDS as a idea was introduced in 2014 by RBI and later in 2017, 3 platforms like M1Xchange promoted by Mynd Solutions, Invoicemart (a joint venture of Axis Bank and mjunction services), and RXIL (joint venture in between SIDBI and NSE) have been issued licenses to operate on TReDS mechanism.
The on-line platform permits invoice discounting for MSMEs from government purchasers like government departments, public sector units, private purchasers like corporates. BSE Tech mentioned TReDS business enterprise of BSE will commence only soon 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 mentioned in a statement.
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BSE Tech focuses on commodities, banking and economic services markets in India to provide several options like clearing and settlement technique, back-workplace operations, upkeep of client records, bulk mailers, payment gateway, and so on. In July this year, in order to enable MSMEs tide more than their delayed payments problem, the Parliament had passed the Factoring Regulation (Amendment) Bill. According to the government’s delayed payments monitoring portal MSME Samadhaan, more than 91,000 such applications involving Rs 24,339 crore have been filed by micro and compact enterprises (MSEs) because the launch of the portal in October 2017, of which 9,490 situations have been disposed.