Q. RBI expanded the scope of ‘Trade receivables discounting system (TReDS)’ by allowing which institutions?
Answer:
Insurance Companies
Notes: The Reserve Bank of Indian (RBI) has expanded the scope of the trade receivables discounting system (TReDS) by allowing insurance companies to function as participants.
This is expected to boost the cash flows of MSMEs. TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers.