Question : Establishment of TReDS

(a) whether the RBI have given license to banks and accounting solution firms to establish and operationalise Trade Receivable Discounting Systems (TReDS) and if so, the details thereof ;
(b) whether the Government has taken steps for expediting the establishment of TReDS in view of the dependence of MSME sector on informal sources leading to losses on account of demonetisation and if so, the details thereof ;
(c) whether Government has agreed to the recommendation of Federation of Indian MSMEs (FISME) to extend legislative backing to TReDS so that status of deemed acceptance is granted to the uploaded invoices to convert them into negotiable financial instruments mandatorily; and
(d) if so, the details thereof ?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SANTOSH KUMAR GANGWAR)

(a) & (b) :
Reserve Bank of India (RBI) has given licence to Receivables Exchange of India Limited (RXIL), jointly promoted by NSE Strategic Investment Corporation Ltd. (NSICL) and Small Industries Development Bank of India (SIDBI) out of three entities which were granted in-principle’ approval for setting up and operationalisation of Trade Receivable Discounting Systems (TReDS). RXIL has started operations on January 09, 2017.

(c) and (d) : No, Madam.


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LOK SABHA
UN-STARRED QUESTION NO. 1698
TO BE ANSWERED ON 10th March, 2017 / PHALGUNA 19, 1938 (SAKA)

‘ESTABLISHMENT OF TReDS’
QUESTION
1698 : SHRI RAJESH RANJAN: SMT. RANJEET RANJAN :
Will the Minister of FINANCE be pleased to state : ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SANTOSH KUMAR GANGWAR)

(a) whether the RBI have given license to banks and accounting solution firms to establish and operationalise Trade Receivable Discounting Systems (TReDS) and if so, the details thereof ;
(a) and (b) :
Reserve Bank of India (RBI) has given licence to Receivables Exchange of India Limited (RXIL), jointly promoted by NSE Strategic Investment Corporation Ltd. (NSICL) and Small Industries Development Bank of India (SIDBI) out of three entities which were granted in-principle’ approval for setting up and operationalisation of Trade Receivable Discounting Systems (TReDS).
RXIL has started operations on January 09, 2017.
(b) whether the Government has taken steps for expediting the establishment of TReDS in view of the dependence of MSME sector on informal sources leading to losses on account of demonetisation and if so, the details thereof ;
(c) whether Government has agreed to the recommendation of Federation of Indian MSMEs (FISME) to extend legislative backing to TReDS so that status of deemed acceptance is granted to the uploaded invoices to convert them into negotiable financial instruments mandatorily; and (c) and (d) : No, Madam.
(d) if so, the details thereof ?

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