RBI issues Trade Receivables Discounting System Directions, provides rationalisation and harmonisation of existing regulatory framework

The Reserve Bank of India (RBI) has issued Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026. RBI had placed the draft Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026 on April 08, 2026, in the public domain for stakeholder feedback. The draft Directions proposed, inter alia rationalisation and harmonisation of the existing regulatory framework for TReDS, removal of the requirement of due diligence for MSME sellers, and revision of the capital requirements applicable to TReDS operators. RBI noted that feedback from the public has been examined and suitably incorporated in the final directions. The final Directions prescribe the appropriate requirements for an efficient functioning of TReDS while providing the authorised entities flexibility to frame operational and procedural guidelines in accordance with the extant regulatory framework. These Directions shall come into effect immediately, unless indicated otherwise therein.

Powered by Capital Market - Live News