Question : TReDS Platform

(a) whether the Government had started TReDS for facilitating the financing / discounting of trade receivables of MSMEs through multiple financiers;
(b) if so, the details thereof;
(c) whether the Government has issued any instruction to the State Governments to use TReDS platform;
(d) if so, the details thereof along with the list of States which are using TReDS and if not, the reasons therefor;
(e) Whether the Government has any data with regard to the business done / routed through TReDS; and
(f) if so, the details thereof during the last two years, Year and State-wise?

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(a) and (b): With a view to facilitate the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers, Reserve Bank of India (RBI) issued guidelines on Trade Receivables Discounting System (TReDS) on 3.12.2014 and granted ‘In-principle’ approval to three entities i.e. Receivables Exchange of India Ltd (RXIL) incorporated as a joint venture by SIDBI and NSE, M1xchange set up by Mynd Solutions Pvt Ltd and Invoicemart promoted by A.TReDS Ltd., a joint venture between Axis Bank and mjunction Services. All three entities approved by RBI commenced operations in the year 2017.


(c) and (d): While the Government has not issued any instructions to the State Governments mandating the use of TReDS platform, vide M/o MSME’s notification dated 2.11.2018, onboarding on TReDS platform has been made mandatory for all Central Public Sector Enterprises (CPSEs) and companies having turnover of more than Rs 500 crore.

(e) and (f): As per data reported by the three TReDS platforms, a total of 2.35 lakh invoices amounting to Rs 5870.56 crore and 4.77 lakh invoices amounting to Rs 11,151.02 crore have been discounted on these platforms for financial year (FY) 2018-19 and FY 2019-20 respectively. State wise data in respect of business routed on RXIL is enclosed at Annexure-I. The other two platforms i.e. Invoicemart and M1Xchange have informed that state-wise data is not maintained by them.
‘*****’