Home / Business and Economy / RBI Simplifies TReDS for MSMEs, Boosts Liquidity
RBI Simplifies TReDS for MSMEs, Boosts Liquidity
23 Jun
Summary
- RBI mandates ₹25 crore net worth for TReDS platform applicants.
- New directions aim to simplify onboarding for MSME sellers.
- Financiers can now avail credit guarantee for exposures on TReDS.
The Reserve Bank of India (RBI) has finalized new directions for Trade Receivables Discounting System (TReDS) platforms, effective as of June 23, 2026. These regulations are designed to streamline the process for MSME sellers accessing working capital through invoice financing.
A significant update requires TReDS platform applicants to possess a minimum net worth of ₹25 crore, evidenced by a statutory auditor's certificate. Existing authorized platforms must meet this criterion by March 31, 2028, and maintain it thereafter.
These measures aim to boost MSME liquidity by facilitating easier conversion of trade receivables into liquid funds. The TReDS platforms will ensure efficient invoice uploading, bidding, discounting, and settlement, while also verifying the authenticity of uploaded invoices.
Financiers participating on these platforms will benefit from the ability to avail credit guarantees for their exposures. The RBI's objective is to address the persistent financial constraints faced by MSMEs in securing adequate finance.
