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Informist, Monday, Oct. 27, 2025

 

NEW DELHI – Reserve Bank of India Deputy Governor Swaminathan J. Monday called for wider adoption of digital solutions such as the Trade Receivables Discounting System, or TReDS, to address financial literacy gaps and delayed payments. Speaking at the 30th meeting of the Standing Advisory Committee to review the flow of credit to the Micro, Small, and Medium Enterprises in Coimbatore, the deputy governor also encouraged alternative credit assessment models, and fair, transparent, and empathetic lending practices, the central bank said in a press release.

 

"He also urged MSME associations to play a greater role in capacity building and in bridging information gaps to help enterprises better leverage formal financial channels," the RBI said. The Trade Receivables electronic Discounting System, regulated by the RBI, is a marketplace that enables buyers such as government departments, public sector undertakings, and corporate to honour timely payments to their MSME suppliers. TReDS facilitates the financing of trade receivables of MSMEs from corporate and other buyers through multiple financiers electronically.

 

The review meeting was also attended by executive directors of the RBI, government officials, Small Industries Development Bank of India Chairman Manoj Mittal, managing directors of State Bank of India and Punjab National Bank, among others.

 

The committee reviewed the flow of credit to MSMEs and deliberated on ways to address issues related to the credit gap in the sector, cash-flow based lending and digital solutions for improved credit linkage, accelerating adoption of Trade Receivables Discounting System, enhancing the usage of credit guarantee schemes, and revival and rehabilitation of MSME units, the central bank said.

 

"During the interactive session, the industry associations highlighted the challenges being posed by the uncertainty arising from geopolitical situations and sought the intervention of Government, Regulators and Banks. The meeting concluded with responses from the officials and an assurance that the feedback and suggestions will be duly examined by the concerned stakeholders."  End

 

Reported by Shubham Rana

Edited by Ashish Shirke

 

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