What is the full form of TReDS?

TReDS (Trade Receivable electronic Discounting System) is an RBI-regulated online platform designed to help Micro, Small, and Medium Enterprises (MSMEs) finance their trade receivables. • It allows MSMEs to discount invoices and bills of exchange raised on large corporates, thereby ensuring faster cash flows. • This reduces working capital pressures, improves liquidity, and strengthens financial stability. • The concept was introduced by the RBI in 2014, and in 2017, licenses were granted to three operators: RXIL, Invoicemart, and M1Xchange. By bridging MSMEs and financiers, TReDS ensures timely payments and minimizes credit risks.