RBI issues new TReDS guidelines to help MSMEs access cash
Business
The RBI just issued new guidelines for TReDS platforms, which are designed to make life easier for micro, small, and medium enterprises (MSMEs).
These platforms let MSMEs auction their invoices to banks or NBFCs so they can get cash quickly instead of waiting ages for payments.
RBI sets ₹25 cr TReDS threshold
The updated rules mean MSMEs can sign up more easily and financiers now have access to credit guarantees.
TReDS operators must have a minimum net worth of ₹25 crore by March 2028.
In addition, the platforms must offer invoice uploading, bidding, discounting, and settlement, all while keeping things legitimate.
The RBI hopes these changes will help MSMEs worry less about cash flow and focus more on growing their businesses.