The Reserve Bank of India (RBI) has released draft directions for the Trade Receivables Discounting System (TReDS), aimed at improving financing access for micro, small and medium enterprises (MSMEs).
MSMEs play a crucial role in India’s economy but often face challenges in converting trade receivables into liquid funds. To address this, the RBI has previously introduced guidelines for setting up TReDS platforms to facilitate financing of receivables for MSME sellers.
As part of its Statement on Developmental and Regulatory Policies dated April 8, 2026, the central bank has undertaken a comprehensive review to rationalise and harmonise existing regulations, leading to the issuance of the draft directions.
The RBI has invited comments and feedback from regulated entities, stakeholders, and the public on the draft framework. Responses can be submitted through the ‘Connect 2 Regulate’ section on its website by May 1, 2026.