The Reserve Bank of India (RBI) is planning to bring all Non-Banking Financial Company (NBFCs) on the Trade Receivable Discounting System (TReDS) platform. TReDS was initiated by the central bank to facilitate MSME with receivable payments from the corporate.
Anil Kumar Sharma, Executive Director, RBI at the panel discussion Springboard@75 at SIDBI ET Summit said,
“Going forward, all NBFCs would be allowed to onboard the TReDS platform. In addition, we have said TReDS can access GST and other linkages which are available so that any financial entity requires any information that should be possible. ”
He further added that the Reserve Bank of India is encouraging P2P lending, TreDS, regulatory sandbox, abd co-lending model to enhance credit flow to the MSME sector. He emphasized imbibing technology in operations as it will be beneficial for both MSMEs and banks in terms of increasing credit to the sector. The testing facilities need to be improved as well as proper training should be given to people employed for operating the imported machines.
