Main Note - [Payment Systems](Payment%20Systems.md) 1. Trade Receivables Discounting System [(TReDS)](https://rbi.org.in/scripts/FAQView.aspx?Id=132) is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. 2. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs). 3. Sellers incur no risk if buyers fail to pay the invoice.So the risk is from the buyer side. ## Timeline 1. [==March 19, 2014](RBI_Press%20Release_20140319_RBI%20Seeks%20Feedback%20on%20Concept%20Paper%20on%20Trade%20Receivables%20and%20Credit%20Exchange%20for%20Financing%20MSMEs.pdf) - RBI's 2014 concept [paper](RBI_Concept%20Paper_201403_Concept%20Paper%20on%20Trade%20Receivables%20and%20Credit%20Exchange%20for%20Financing%20of%20Micro,%20Small%20and%20Medium%20Enterprises.pdf), titled _Micro, Small & Medium Enterprises (MSME) Factoring-Trade Receivables Exchange_, proposed an electronic platform to resolve MSME liquidity constraints.== This framework laid the foundation for the Trade Receivables Discounting System (TReDS) to enable MSMEs to auction and discount their trade invoices 2. [Jul 22, 2014](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31682) - Draft [Guidelines for setting up of and operating Trade Receivables Discounting System (TReDS) were issued.](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=32664) 3. [Dec 3, 2014](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=32664) - Final guidelines for setting up of and operating TReDS were issued. 4. [Feb 06, 2015](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=33176) - RBI extended last date from February 13, 2015 to March 9, 2015 for receiving applications for setting up of and operating the TReDS. 5. [Mar 25, 2015](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=33540) - RBI released Names of Applicants *(approval pending)* of TReDS. 6. [Nov 24, 2015](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=35551) - RBI granted “in-principle” approval to three applicants for setting up TReDS. 7. ==[July 2, 2018](https://rbi.org.in/scripts/Bs_viewcontent.aspx?Id=3504) - Guidelines for the TReDS were issued, and it was launched in India.== 8. [Jan 1, 2020](https://rbi.org.in/scripts/FAQView.aspx?Id=132) - FAQs on TReDS were issued 9. April 08, 2026 - [Draft Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62526&fn=9&Mode=0)  10. [June 23, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62997) - [Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026](https://www.rbi.org.in/scripts/BS_ViewMasDirections.aspx?id=13526) were issued. 1. [What changed in 2026 directions compared to 2018 guidelines?](https://docs.google.com/spreadsheets/d/174id9qUgO_GS8_ebyq4nyJTTyglXvgrly7vw2dEWjXs/edit?usp=sharing) <div style=" height: 500px; border: 0.5px solid #1a3a6b; box-shadow: 0 2px 10px rgba(0, 0, 0, 0.08); margin: 1.5em 0; "> <iframe src="https://docs.google.com/spreadsheets/d/e/2PACX-1vSC_9-DQcb4gOliQpBU3CoctBphz_9CkMk1UrquucXxLOmOOKcWjxgyrT20uDQOWjM4tzRs1KpTsfwb/pubhtml?gid=2029379992&amp;single=true&amp;widget=true&amp;headers=false" width="100%" height="100%" frameborder="0" sandbox="allow-scripts allow-same-origin allow-popups allow-popups-to-escape-sandbox" style="display:block;"> </iframe> </div> ### Changes in 2026 Directions compared to 2018 Guidelines. 1. [What changed in 2026 directions compared to 2018 guidelines?](https://docs.google.com/spreadsheets/d/174id9qUgO_GS8_ebyq4nyJTTyglXvgrly7vw2dEWjXs/edit?usp=sharing) <div style=" height: 775px; border: 0.5px solid #1a3a6b; box-shadow: 0 2px 10px rgba(0, 0, 0, 0.08); margin: 1.5em 0; "> <iframe src="https://docs.google.com/spreadsheets/d/e/2PACX-1vSC_9-DQcb4gOliQpBU3CoctBphz_9CkMk1UrquucXxLOmOOKcWjxgyrT20uDQOWjM4tzRs1KpTsfwb/pubhtml?gid=0&amp;single=true&amp;widget=true&amp;headers=false" width="100%" height="100%" frameborder="0" sandbox="allow-scripts allow-same-origin allow-popups allow-popups-to-escape-sandbox" style="display:block;"> </iframe> </div> ## Platforms/Exchanges 1. As on June 2026, there are four TReDS platform authorised and regulated by the RBI. 1. [Receivables Exchange of India Ltd (RXIL)](https://www.rxil.in/): A joint venture between the Small Industries Development Bank of India (SIDBI) and the National Stock Exchange (NSE). 2. [Invoicemart](https://www.invoicemart.com/): Operated by A. TReDS Ltd., a joint venture between Axis Bank and mjunction services. 3. [M1xchange](https://www.m1xchange.com/): Operated by Mynd Solutions Pvt. Ltd.. 4. C2FO - A more recent entrant (2022) also licensed by the RBI ## Regulation and Supervision of TReDS 1. TReDS is authorized, regulated, and supervised as a "payment system" by RBI in India, under the PSS Act 2007 (Act 51 of 2007). 2. The Payments Regulatory Board (PRB) is the highest policy making body on payment systems in the country. Payments Regulatory Board (PRB) was constituted under Section 3 (2) of PSS Act, 2007, effective from May 9, 2025, replacing the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a committee of the Central Board of the Reserve Bank of India. 1. ==The PRB under the chairmanship of Governor, RBI became the designated authority for regulation and supervision of the payment systems under Sections 3(1) and (2) of the PSS Act, 2007.== 2. In other words, the RBI exercises the powers, performs the functions and discharges the duties conferred on it, to regulate and supervise payment systems within the country, under the PSS Act, 2007 through a Board known as the "Payments Regulatory Board". 3. The Department of Payment and Settlement Systems (DPSS) (formed in 2005) of RBI serves as the Secretariat to the PRB, that is, the department assists the PRB (the board) performing its functions. 2. More on [Oversight of the Payment Systems](Oversight%20of%20Payment%20Systems.md#Oversight%20(the%20Legal%20Basis)) ## Master Directions > [!normal] > 1. Jun 23, 2026 - [Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026](https://www.rbi.org.in/scripts/BS_ViewMasDirections.aspx?id=13526). > 1. April 08, 2026 - [Draft Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62526&fn=9&Mode=0)  > 2. July 2, 2018 - [Guidelines](https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3504) for the Trade Receivables Discounting System (TReDS), last updated on July 2, 2018 *(withdrawn)* > 3. <span style="color:#C21E56;">Master Directions on Authorisation to operate a Payment System</span> > 1. [Jun 15, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62941) - RBI Issues [Master Directions on Authorisation to operate a Payment System](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13502) > 4. Nov 28, 2025 - [RBI (Commercial Banks – Know Your Customer) Directions, 2025](https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13141) *(of buyers by TReDS operators)* > 5. [FAQs on TReDS](https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=3138) ## Regulations *(Related)* 1. Jan 14, 2022 - [Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12223&Mode=0). 1. They pertain to the manner of filing of particulars of transactions with the Central Registry by a Trade Receivable Discounting System (TReDS) on behalf of Factors. Factors are the financial institution that buys/discounts that receivable from the seller. It is just another name for the "Financier" in the TReDS documents. 2. Assignment of Receivables - When a Factor discounts an invoice on TReDS, the legal right to collect payment for that invoice is transferred (assigned) from the MSME Seller to the Factor. Earlier a legal transfer of the receivable to the financier wasn't always "centrally recorded". 3. 2026 directions prevents double-financing. To ensure the seller doesn't take the same invoice and sell/discount it again on another platform or with another bank, the transaction must be registered with CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest). This responsibility lies with TReDS operator. 4. TReDS Role - Instead of making the bank or NBFC (the Factor) manually log into CERSAI to register every single discounted invoice, the TReDS platform automates this step and files the assignment details with the Central Registry on behalf of the Factor. ## Data 1. [Entity-wise TReDS Statistics](https://www.rbi.org.in/Scripts/TReDSStatisticsView.aspx) ## Related Notes 1. [Payment Systems](Payment%20Systems.md) 2. [Oversight of Payment Systems](Oversight%20of%20Payment%20Systems.md)