Which of the following statements about the Trade Receivables Discounting System (TReDS) introduced by the Reserve Bank of India (RBI) is correct? TReDS platforms were introduced by the RBI to facilitate financing of trade receivables for MSMEs, and they process an estimated annual worth of Rs 60,000 crore in transactions. The RBI has expanded TReDS by allowing insurance companies to participate as stakeholders, providing an insurance facility to hedge against default risks. The participants in TReDS platforms include MSME sellers, buyers, financiers, and insurance companies as the “fourth participant,” with financiers evaluating bids based on the credit rating of buyers.

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IBPS RRB PO Mains 29 Sep 2024 Paper

Question : 113 of 200

Marks: +1, -0

Which of the following statements about the Trade Receivables Discounting System (TReDS) introduced by the Reserve Bank of India (RBI) is correct?

TReDS platforms were introduced by the RBI to facilitate financing of trade receivables for MSMEs, and they process an estimated annual worth of Rs 60,000 crore in transactions.
The RBI has expanded TReDS by allowing insurance companies to participate as stakeholders, providing an insurance facility to hedge against default risks.
The participants in TReDS platforms include MSME sellers, buyers, financiers, and insurance companies as the “fourth participant,” with financiers evaluating bids based on the credit rating of buyers.

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