KredX Gets RBI Approval to Function as TReDS Platform.

Banking & Finance

On January 9, 2025, Bengaluru-based KredX, India's largest supply chain finance platform, received approval from the Reserve Bank of India (RBI) to operate as a Trade Receivables Discounting System (TReDS) platform.


      - The new business will operate under the brand name DTX (Domestic Trade Exchange).

      - KredX becomes the fifth company to obtain this license, joining Receivables Exchange of India (RXIL), M1 Exchange, Invoice Mart, and C2FO (Collaborative Cash Flow Optimization) Factoring Solutions.

      - Launched in 2018, the TReDS platform operates under RBI regulations and the PSS Act, requiring companies to have a minimum paid-up equity capital of Rs 25 crore and businesses with a turnover of Rs 250 crore or more to register.

Main Point :-   (i) To set up a TReDS platform, companies must have a minimum paid-up equity capital of Rs 25 crore, and businesses with a turnover of Rs 250 crore or more are required to register on the platform.

      (ii) Sellers must have been in operation for over a year to participate on the TReDS platform, where they upload invoices listed as Factoring Units (FUs) for financiers to bid on, and choose the most favorable bid for advance payment.

(iii) TReDS transactions are expected to grow significantly, from around USD 30 billion annually in January 2025 to approximately USD 50 billion by 2026, ensuring timely payments and better cash flow for sellers.

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