New Delhi, Feb 13 (KNN) The Mumbai headquartered Dena Bank has signed a pact with Receivables Exchange of India Ltd (RXIL) as a TReDS (Trade Receivables Discounting System) partner for discounting invoices of MSMEs on digital platform.
With the pact in place, the operations commenced from 2nd of February 2018. 05.02.2018.
Earlier, Dena Bank was registered with RXIL (Receivable Exchange of India Ltd) as a TReDS (Trade Receivable Discounting System) partner for discounting invoice of MSMEs on digital platform.
RXIL is a joint venture between SIDBI & NSE, set up to operate a TReDS Platform for factoring of invoices of the MSMEs in compliance of guidelines issued by RBI.
TReDS is a digital platform to help MSMEs to get their trade receivables financed at a competitive rates through an auction mechanism. This will allow MSMEs to have easy and hassle free access to finance and prompt realization of their receivables.
During the Part 1 of the budget session earlier this month, Finance Minister Arun Jaitley hinted towards mandating the public sector banks to start functioning on TReDS.
It is proposed to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN, Jaitley said during his budget speech in the parliament. (With Inputs from a media report) (KNN/DA)