Answer-What is the full form of TReDS?

Q: Answer-What is the full form of TReDS?

TReDS Trade Receivables Electronic-Discounting System is an online platform that helps Micro, Small, and Medium Enterprises MSMEs finance their trade receivables. It allows MSMEs to discount their invoices and bills of exchange to large corporations, which can help them reduce working capital needs, improve liquidity, and manage cash flow better. The concept of TReDS to facilitate the financing of trade receivables of MSMEs was introduced by the RBI in 2014. Accordingly, the RBI, in 2017, issued licence to three players RXIL, Invoicemart and M1Xchange.

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What is the full form of TReDS?

Question

What is the full form of

TReDS?

A Trade Related electronic Disclosure System Correct Answer Incorrect Answer

B Term Related electronic Development System Correct Answer Incorrect Answer

C Trade Receivable electronic Discounting System Correct Answer Incorrect Answer

D Trade Receivable electronic Development System Correct Answer Incorrect Answer

E Trade Receivable electronic Disclosure System Correct Answer Incorrect Answer

Solution

TReDS (Trade Receivables Electronic-Discounting System) is an online platform that helps Micro, Small, and Medium Enterprises (MSMEs) finance their trade receivables. It allows MSMEs to discount their invoices and bills of exchange to large corporations, which can help them reduce working capital needs, improve liquidity, and manage cash flow better. The concept of TReDS to facilitate the financing of trade receivables of MSMEs was introduced by the RBI in 2014. Accordingly, the RBI, in 2017, issued licence to three players – RXIL, Invoicemart and M1Xchange.

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SIDBI Grade A (Assistant Manager)

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