BP · 2026UPDATES

TReDS Working

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for 2026 updates — Bank Promotions.

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Q

What does TReDS stand for?

A

TReDS stands for Trade Receivables Discounting System, an electronic platform for facilitating the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers.

Q

What is the minimum invoice amount eligible for discounting on TReDS?

A

No minimum amount is prescribed by RBI for TReDS.

Q

Which regulatory body governs TReDS platforms in India?

A

The Reserve Bank of India (RBI) governs and regulates TReDS platforms under the Payment and Settlement Systems Act, 2007.

Q

Who bears the credit risk in a TReDS transaction after the bid is accepted?

A

The financier bears the credit risk on the buyer.

Q

What are the three entities involved in a TReDS transaction?

A

The three entities are the MSME seller (supplier), the corporate/government buyer, and the financier (bank or NBFC-Factor).

Q

What is the full form of RXIL in the TReDS ecosystem?

A

Receivables Exchange of India Ltd.

Q

Which three TReDS platforms are currently operational in India?

A

The three operational TReDS platforms are RXIL (Receivables Exchange of India Ltd), M1xchange (Mynd Solutions), and InvoiceMarket (A.TREDS Ltd).

Q

Which year was the TReDS framework introduced by RBI?

A

RBI introduced the TReDS framework in 2014.

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