HAL becomes first PSU to transact on TReDS Platform

State-owned aerospace and defence manufacturer Hindustan Aeronautics (HAL) became the first public sector enterprise (PSU) to make transaction on RXIL TReDS platform. It executed its first digitised invoice discounting transaction on RXIL TReDS platform by accepting digital invoice uploaded by Nasik-based MSME (micro category) vendor Narendra Udyog. This transaction was financed by Bank of Baroda.

RXIL- TReDS platform

TReDS is online electronic institutional mechanism for facilitating the financing of trade receivables of micro, small and medium enterprises (MSME) through multiple financiers. RXIL is India’s first TReDS platform operating since January 2017. It promoted by National Stock Exchange (NSE), Small Industries Development Bank of India (SIDBI), State Bank of India (SBI), ICICI Bank and Yes Bank. It enables MSMEs to gain control of their receivables with enhanced visibility and timeliness. In October 2017, Union Government had mandated all major PSUs to join TReDS platform to facilitate payments to MSME (micro, small and medium enterprises) vendors.

Month: Current Affairs - August, 2018