Ans:
A settlement file specifies how much money must be deducted from and credited to participants' accounts (sellers, purchasers, and financiers) by a certain date/time. In other words, it shows how much a financier must pay an MSME seller, as well as how much a buyer owes the financier on a specific date/time. TReDS entities create a settlement file and transfer it to existing payment systems (such as the National Automated Clearing House) for actual monies payment.