Hotline: 1800 102 2007
X
Search Business Opportunities
2014-07-24

RBI issues draft guidelines to facilitate financing to MSMEs

In order to facilitate financing to micro, small and medium enterprises (MSMEs) and to help them convert trade receivables into liquid funds, Reserve Bank of India (RBI) issued draft guidelines for setting up and operating a trade receivables discounting system (TReDS).

In order to facilitate financing to micro, small and medium enterprises (MSMEs) and to help them convert trade receivables into liquid funds, Reserve Bank of India (RBI) issued draft guidelines for setting up and operating a trade receivables discounting system (TReDS).

 

RBI said MSMEs, despite their important role in the economic fabric of the country, continue to face constraints in obtaining adequate finance, especially in terms of their ability to convert their trade receivables into liquid funds. It said there is a need to address this pan-India issue through setting up of an institutional mechanism for financing trade receivables for MSMEs.

 

“The scheme for setting up and operating institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers will be known as Trade Receivables Discounting System (TReDS),” RBI said in a release.

 

As per the draft guidelines, TReDS will facilitate the discounting of both invoices as well as bills of exchange.

Related opportunities
  • Competitive Exam Coaching Institute
    Want to be an entrepreneur in the education sector? IBT..
    Locations looking for expansion New Delhi
    Establishment year 2008
    Franchising Launch Date 2009
    Investment size Rs. 2lac - 5lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Central Delhi New Delhi
  • Bakery & Confectionary
    About Us: WS Bakers is the brand name of WS Foods..
    Locations looking for expansion Maharashtra
    Establishment year 2014
    Franchising Launch Date 2014
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Quick Service Restaurants
    About Us: Cafe social is focused on providing a safe and..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Opticians/Eye Wear
    About Us: Naytr is an eyewear brand offering a complete range..
    Locations looking for expansion Delhi
    Establishment year 1998
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts