The Reserve Bank of India (RBI) has granted approval to three entities - Axis Bank, the NSE-Sidbi combine and Mynd Solutions - to operate Trade Receivables Discounting System (TReDS) for improving financial access to small and medium enterprises (SMEs).
It will allow SMEs to post their receivables on the system and get them financed. Besides giving them greater access to finance, it will also put greater discipline on companies to pay their dues on time. RBI, in a statement, said "in-principle" approval to the three applicants was valid for six months.
