HAL becomes first PSU to transact on TReDS
What in news:
Receivables Exchange of India (RXIL) and Hindustan Aeronautics (HAL) has become the
first public sector enterprise to make a transaction on the "TReDS platform"
Ø According to the NSE-SIDBI joint
is an online electronic institutional mechanism for facilitating the financing of trade receivables of
micro, small and medium enterprises (MSME) through multiple financiers.
Hindustan Aeronautics Ltd (HAL) executed its first digitized
invoice discounting transaction on RXIL TReDS
platform, when it accepted the digital invoice uploaded
by Narendra Udyog, a Nasik
based MSME (micro category) vendor earlier this week
Ø "This makes HAL the first PSU to transact on TReDS across
Ø The transaction was financed
by Bank of Baroda and since stands settled.
Ø Last year, the central government mandated all major PSUs to join TReDS platform to facilitate
payments to MSME vendors.
Ø RXIL is a TReDS platform operating since
January 2017 and is promoted by the National Stock Exchange, Small Industries
Development Bank of India, State Bank of India, ICICI Bank and Yes Bank.
Ø Receivables Exchange of India Ltd (RXIL), is a
joint venture promoted by Small Industries Development Bank of India (SIDBI),
the apex financial institution for promotion and financing of MSMEs in India
and National Stock Exchange of India Limited (NSE), the premier stock exchange in
Ø RXIL has been incorporated under the Companies Act, 2013 on February 25,
Ø RXIL operates the Trade Receivables Discounting System (TReDS) Platform as per the TReDS
guideline issued by RBI on December 3, 2014.
Ø RXIL is the first entity to receive the approval from Reserve Bank of
India (RBI) on December 01, 2016 to launch India's First TReDS
TReDS related to
a) Facilitate the financing of trade receivables of MSMEs
b) Online pharmaceutical portal
c) Newly developed submarine
d) None of above
Ans - a
Critically analyse the
benefits oftransaction on the "TReDS platform"