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MSME suppliers of NTPC gets access to TReDS
Kolkata, Oct 23 (PTI) The MSME suppliers for NTPC Ltd can now use Trade Receivables Discounting System (TReDS) platform which will enable them to access working capital, an exchange dealing in TReDS said Tuesday.
TReDS is a regulatory framework put in place by the Reserve Bank of India under the Payment and Settlement Systems Act 2007 (PSS Act) to regulate the trade receivables between MSMEs, large corporations and financiers.
M1xchange said it has started transacting with NTPC limited and the use of TReDS is aimed at improving the flow of funds to the MSMEs by reducing the realization cycles of receivables.
TReDS allows MSMEs, which usually struggle to stay afloat due to paucity of working cpital, to post their trade receivables on the system and get them financed.
"TReDS is a promising concept, coming at a time when the government is also giving a push to the digital economy ecosystem. M1xchange platform would provide a reliable tool to our vendors due to its competitive pricing mechanism," NTPC general manager (materials) S C Chavady said.
We at PNB are very encouraged to see PSUs like NTPC helping their MSMEs to get early liquidity by bill discounting on M1xchange," PNB GM-MSME Neerja Kumar said.
The coming together of M1xchange and NTPC Limited would address the financing concerns of MSMEs in the power sector, an important segment of the economy, a statement issued by MIxchange said.
The digital platform of M1xchange came into existence in April last year.
Owned by outsourcing and consulting firm Mynd Solutions M1xchange has already on-boarded many large corporates, their MSME vendors and financiers (banks - public, private, foreign and NBFCs) to do the financing transactions, it said. PTI BSM KK KK KK
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