RBI Authorize RXIL for 1st trade receivables exchange platform

RBI-Authorize-RXIL-for- 1st -trade -receivables -exchange -platform The Reserve Bank of India, on December 1, 2016,  authorised the Receivables Exchange of India (RXIL), promoted by SIDBI and NSE, to launch the country’s first trade receivables exchange platform, TReDS, for MSMEs, buyers and financiers. The trade receivables discounting systems (TReDS), an automated system driven

platform is expected to benefit MSMEs by facilitating them to auction their trade receivables at competitive market rates through transparent bidding process on the platform by multiple financiers.

The TReDS will be the first attempt in the country to introduce factoring without recourse and will help not only in quick realisation of receivables but also in appropriate price discovery.

 Promoted by SIDBI, the apex financial institution for promotion and financing of MSMEs and the National Stock Exchange,RXILhas SBI, ICICI Bank, Yes Bank, SBI Caps, and ICIC Securities as other investors.

The Receivables Exchange is an auction based marketplace connecting large sellers of trade receivables to a broad network of institutional buyers.

SIDBI:

♦ Small Industries Development Bank of India (SIDBI) is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises.

♦ Founded: April 2, 1990

♦ CEO: Dr. Kshatrapati Shivaji