24 June 2026

RBI TReDS platform process

TReDS is a specific, named digital infrastructure platform directly relevant to MSME financing and economic policy, making it a high-probability topic for questions on industrial development and financial inclusion.

Questions

1. Discuss the role of the Trade Receivables Discounting System (TReDS) in addressing the working capital constraints faced by the MSME sector in India. 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. The formalization of the MSME sector is critical for inclusive economic growth. In this context, evaluate how regulatory interventions by the RBI, such as the recent modifications to the TReDS platform, facilitate credit flow and financial stability for small businesses. 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. What is the primary purpose of the Trade Receivables Discounting System (TReDS) platform?

   1. A To facilitate the export of MSME products to international markets
   2. B To regulate the interest rates charged by microfinance institutions
   3. C To provide direct government subsidies to MSMEs
   4. D To allow MSMEs to auction trade receivables to unlock working capital

2. As per the recent RBI directions, what is the minimum net worth requirement for entities providing discounting services on the TReDS platform?

   1. A ₹15 crore
   2. B ₹20 crore
   3. C ₹25 crore
   4. D ₹10 crore