Home » The Reserve Bank of India (RBI) has taken a significant step to enhance the trade receivables discounting system (TReDS) by allowing insurance companies to participate as stakeholders. Under the expanded TReDS guidelines, who can participate as financiers?
The Reserve Bank of India (RBI) has taken a significant step to enhance the trade receivables discounting system (TReDS) by allowing insurance companies to participate as stakeholders. Under the expanded TReDS guidelines, who can participate as financiers?
June 12, 2023
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(a) Banks and NBFC-Factors only (b) Insurance companies only (c) Entities permitted under the Factoring Regulation Act (FRA) and its rules (d) MSMEs
Ans.(c) Sol. The RBI has expanded the pool of financiers by allowing all entities/institutions allowed to undertake factoring business under the FRA and its rules to participate as financiers on TReDS platforms.