BSE Subsidiary Gets RBI Nod For Trade Receivables Discounting System Business
NDTV
BSE Technologies on Tuesday announced that it has received an in-principle approval from the Reserve Bank of India (RBI) to set up and operate Trade Receivables Discounting System (TReDS).
New Delhi: BSE Technologies on Tuesday announced that it has received an in-principle approval from the Reserve Bank of India (RBI) to set up and operate Trade Receivables Discounting System (TReDS), under the Payments and Settlement Systems Act, 2007. BSE Technologies is a wholly owned subsidiary of BSE which provides IT solutions.
TReDS is an electronic platform that facilitates financing or discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. The trade receivables could be due from corporates and other buyers, including government departments and public sector undertakings (PSUs).
The BSE-owned IT solutions provider said, "The TReDS platform will bring all the aforesaid participants together for facilitating uploading, accepting, discounting, trading and settlement of the invoices or bills of MSMEs. The TReDS business of BSE will commence only after the receipt of final approval and certificate of license from the RBI."
Ashish Kumar Chauhan, Managing Director and Chief Executive Officer, BSE said, "BSE Tech provides wide range of IT solutions focusing on commodities, banking and financial services markets. With the in-principle authorisation provided by RBI to set up TReDS, BSE Tech will now have the capability to provide an option to MSME to manage their working capital more efficiently through the TReDS platform. We are hopeful with the launch of this TReDS platform the financing issues of MSMEs will be better addressed and contribute to their growth."
