RBI Issues Draft Directions for Trade Receivables Discounting System
Summary
The Reserve Bank of India released draft directions for Trade Receivables Discounting System (TReDS) platforms on April 8, 2026, seeking to rationalize and harmonize existing guidelines for MSME trade receivables financing. The draft directions are open for public comments until May 1, 2026. Banks, TReDS platform operators, and MSME stakeholders should review the proposed changes and submit feedback through RBI's Connect 2 Regulate portal.
What changed
RBI has released comprehensive draft directions for Trade Receivables Discounting System (TReDS) platforms, representing a rationalization and harmonization of existing guidelines governing MSME trade receivables financing. The draft replaces fragmented prior guidance with consolidated directions covering platform setup, participant requirements, and operational standards.
Banks, NBFCs participating in TReDS platforms, and MSME sellers should monitor this consultation closely. Once finalized, these directions will establish binding compliance requirements affecting how trade receivables of MSMEs are discounted and financed. Regulated entities should prepare internal assessments of operational changes needed and engage during the consultation period to provide feedback on implementation feasibility.
What to do next
- Review RBI draft TReDS directions and assess operational impact on MSME financing platforms
- Submit comments and feedback to RBI via Connect 2 Regulate portal by May 1, 2026
- Update internal compliance frameworks to align with new TReDS requirements once finalized
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Releases
| () | |
| Date : Apr 08, 2026 | |
| RBI Issues Draft Directions for ‘Trade Receivables Discounting System’ | |
| | Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic fabric of the country. MSMEs face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. In order to address this issue the Reserve Bank of India has, over time, issued guidelines regarding setting up of Trade Receivables Discounting System (TReDS) platforms in the country for facilitating financing of trade receivables of MSME sellers.
As announced in Statement on Developmental and Regulatory Policies dated April 08, 2026, with a view to rationalise and harmonise the applicable guidelines, a comprehensive review has been undertaken. Accordingly, RBI today released the draft Reserve Bank of India (Trade Receivables Discounting System) Directions.
The comments / feedback on the draft Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 01, 2026 through the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/48 | | Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic fabric of the country. MSMEs face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. In order to address this issue the Reserve Bank of India has, over time, issued guidelines regarding setting up of Trade Receivables Discounting System (TReDS) platforms in the country for facilitating financing of trade receivables of MSME sellers.
As announced in Statement on Developmental and Regulatory Policies dated April 08, 2026, with a view to rationalise and harmonise the applicable guidelines, a comprehensive review has been undertaken. Accordingly, RBI today released the draft Reserve Bank of India (Trade Receivables Discounting System) Directions.
The comments / feedback on the draft Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 01, 2026 through the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/48 |
| Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic fabric of the country. MSMEs face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. In order to address this issue the Reserve Bank of India has, over time, issued guidelines regarding setting up of Trade Receivables Discounting System (TReDS) platforms in the country for facilitating financing of trade receivables of MSME sellers.
As announced in Statement on Developmental and Regulatory Policies dated April 08, 2026, with a view to rationalise and harmonise the applicable guidelines, a comprehensive review has been undertaken. Accordingly, RBI today released the draft Reserve Bank of India (Trade Receivables Discounting System) Directions.
The comments / feedback on the draft Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 01, 2026 through the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/48 | |
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