RBI issues final directions on MSMEs' Trade Receivables Discounting System
This story was originally published at 16:40 IST on 23 June 2026
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--RBI issues final directions on Trade Receivables Discounting System
NEW DELHI – The Reserve Bank of India Tuesday issued the final directions on Trade Receivables Discounting System, an electronic platform for facilitating the financing and discounting of trade receivables of micro, small, and medium enterprises. These directions, aimed at rationalisation and harmonisation of the existing regulatory framework for the discounting system for MSMEs, come into effect immediately, the RBI said.
"The final directions prescribe the appropriate requirements for an efficient functioning of TReDS while providing the authorised entities flexibility to frame operational and procedural guidelines in accordance with the extant regulatory framework," the RBI said in a release.
The RBI had released the draft directions on Apr. 8, with an aim to promote ease of doing business for MSMEs and to encourage their greater participation on TReDS. The norms dispense the requirement of due diligence of MSMEs while onboarding on TReDS platforms.
An entity seeking authorisation for setting up and operating Trade Receivables Discounting System, or TReDS, platform must have a minimum net-worth of INR 250 million. The minimum net-worth shall be maintained on an ongoing basis, the RBI said.
Existing entities authorised to operate TReDS platform will have to ensure that the net-worth criteria is met by Mar. 31, 2028. In the draft notifications released Apr. 8, the RBI has proposed to allow entities already authorised to operate the TReDS platform to meet the net-worth criteria by Mar. 31, 2027.
In the final directions, the RBI has done away with the fit-and-proper criteria for directors of an entity proposed in the draft norms. End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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