3 entities to start trade discounting

RBI on Tuesday granted in-principle nod to three entities, including Axis Bank for setting up of Trade Receivables Disco-unting System aimed at improving the flow of funds to MSME sector by reducing the receivables realisation cycles.

The other two entities are Mynd Solutions (Gurgaon, Haryana) and NSE Strategic Investm-ent Corp and Sidbi. TReDS will allow SMEs to post their receivables on the system and get them financed. This will not only give them greater access to finance but will also put greater discipline on corporates to pay dues on time.