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Informist, Wednesday, Apr. 8, 2026

--RBI Malhotra: Propose to ease some onboarding norms for MSMEs 

MUMBAI – The Reserve Bank of India proposed to do away with the requirement of due diligence of micro, small, and medium enterprises while onboarding them on trade receivables discounting system, Governor Malhotra Wednesday said while presenting the first bi-monthly monetary policy statement of 2026-27 (Apr-Mar). This was done to simplify the onboarding process of MSMEs in TReDS and was among the measures that the central bank announced to promote ease-of-doing business. 

A comprehensive review of other extant instructions has also been undertaken and draft directions will be issued shortly for public consultation, the RBI said. The MSMEs and their promoters or promoter groups should be 'fit and proper' to be eligible to operate as TReDS, as per the RBI's rules. RBI would assess the 'fit and proper' status of the applicants on the basis of their past record of sound credentials and integrity, financial soundness, and track record of at least five years in running their businesses.

TReDS is an electronic platform for facilitating the financing or discounting of trade receivables of MSMEs through multiple financiers. These receivables can be due from corporates, government departments, and public sector enterprises. The guidelines for TReDS were issued in 2014 through a concept paper by the central bank and was these were subsequently updated in 2018 and the scope of TReDS was further expanded in 2023 with the inclusion of insurance companies as the fourth participant.  End

Reported by Gopika Balasubramanium

Edited by Akul Nishant Akhoury

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