Lok Sabha Question No. 173 (UNSTARRED), answered on 2020-09-14
Subject: TReDS Platform
Ministry: FINANCE
Asked by: Shivkumar Chanabasappa Udasi, Pratima Bhoumik, Sumedhanand Saraswati, Ranjeetsingh Naik Nimbalkar

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 173

TO BE ANSWERED ON 14th September; 2020 BHADRAPADA 23, 1942 (SAKA)

## TReDS PLATFORM

173 . SHRI SHIVKUMAR C. UDASI: MS. PRATIMA BHOUMIK: SHRI SUMEDHANAND SARASWATI: SHRI RANJEETSINGH HINDURAO NAIK NIMBALKAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government had started TReDS for facilitating the financing discounting of trade receivables of MSMEs through multiple financiers;
- (b) if so, the details thereof;
- (d) if so, the details thereof along with the list of States which are TReDS and if not; the reasons therefor; using
- whether the Government has issued any instruction to the State Governments to use TReDS platform;
- (e) Whether the Government has any data with regard to the business done routed through TReDS; and
- (f) if so, the details thereof during the last two years, Year and State-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) and (b): With a view to facilitate the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers, Reserve Bank of India (RBI) issued guidelines on Trade Receivables Discounting System (TReDS) on 3.12.2014 and In-principle' approval to three entities ie. Receivables Exchange of India Ltd (RXIL) incorporated as a joint venture by SIDB and NSE; MIxchange set up by Mynd Solutions Pvt Ltd and Invoicemart promoted by A.TReDS Ltd. a joint venture between Axis Bank and mjunction Services. All three entities approved by RBI commenced operations in the year 2017. granted
- (c) and (d): While the Government has not issued any instructions to the State Governments mandating the use of TReDS platform; vide Mlo MSME'$ notification dated 2.11.2018, onboarding on TReDS platform has been made mandatory for all Central Public Sector Enterprises (CPSEs) and companies having turnover of more than Rs 500 crore.
- (e) and (: As per data reported by the three TReDS platforms, a total of 2.35 lakh invoices amounting to Rs 5870.56 crore and 4.77 lakh invoices amounting to Rs 11,151.02 crore have been discounted on these platforms for financial year (FY) 2018-19 and FY 2019-20 respectively. State wise data in respect of business routed 0n RXIL is enclosed at Annexure-I The other two platforms i.e. Invoicemart and MIXchange have informed that state-wise data is not maintained by them:

| Receivables Exchange of India Limited (RXIL) State wise data   | Receivables Exchange of India Limited (RXIL) State wise data   | Receivables Exchange of India Limited (RXIL) State wise data   | Receivables Exchange of India Limited (RXIL) State wise data   | Receivables Exchange of India Limited (RXIL) State wise data   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                                                                | State-wise Data of business routed FY 2018-19                  | State-wise Data of business routed FY 2018-19                  | FY 2019-20                                                     | FY 2019-20                                                     |
| State                                                          | No of Invoices                                                 | Amount Financed (in Rs crore                                   | No of Invoices                                                 | Amount Financed (in Rs crore_                                  |
| Andhra Pradesh                                                 | 8                                                              | 0.84                                                           | 68                                                             | 4.48                                                           |
| Assam                                                          | 0                                                              |                                                                | 0                                                              |                                                                |
| Bihar                                                          |                                                                |                                                                | 33                                                             | 0.62                                                           |
| Chnadiggarh                                                    |                                                                |                                                                | 128                                                            | 8.96                                                           |
| Dadra & Nagar Haveli                                           |                                                                | 0.25                                                           | 13                                                             | 0.53                                                           |
| Daman & Diu                                                    | 233                                                            | 6.24                                                           | 6431                                                           | 70.09                                                          |
| Delhi                                                          | 2373                                                           | 213.51                                                         |                                                                | 237.93                                                         |
| Goa                                                            | 60                                                             | 0.21                                                           | 97                                                             | 0.46                                                           |
| Gujarat                                                        | 4607                                                           | 321.22                                                         | 2777                                                           | 275.46                                                         |
| Haryana                                                        | 3810                                                           | 74.99                                                          | 3596                                                           | 68.52                                                          |
| Himachal Pradesh                                               | 190                                                            | 35.00                                                          | 265                                                            | 14.61                                                          |
| Jammu & Kashmir                                                | 0                                                              |                                                                | 0                                                              |                                                                |
| Jharkhand                                                      | 0                                                              |                                                                | 14                                                             | 0.63                                                           |
| Karnataka                                                      | 1685                                                           | 63.28                                                          | 2063                                                           | 87.49                                                          |
| Kerala                                                         | 87                                                             | 0.14                                                           | 178                                                            | 22.78                                                          |
| Madhya Pradesh_                                                | 197                                                            | 17.95                                                          | 610                                                            | 57.06                                                          |
| Maharashtra                                                    | 13815                                                          | 381.80                                                         | 23675                                                          | 874.90                                                         |
| Orissa                                                         |                                                                | 0.08                                                           | 52                                                             | 8.70                                                           |
| Pondicherry                                                    | 0                                                              |                                                                | 58                                                             | 5.07                                                           |
| Punjab                                                         | 186                                                            | 19.06                                                          | 1040                                                           | 47.70                                                          |
| Rajasthan                                                      | 3                                                              | 0.45                                                           | 373                                                            | 27.25                                                          |
| Tamil Nadu                                                     | 2440                                                           | 69.87                                                          | 8730                                                           | 354.42                                                         |
| Telangana                                                      | 579                                                            | 26.78                                                          | 828                                                            | 57.03                                                          |
| Uttar Pradesh                                                  | 222                                                            | 8.25                                                           | 956                                                            | 23.68                                                          |
| Uttarakhand                                                    | 475                                                            | 11.87                                                          | 1729                                                           | 29.81                                                          |
| West Bengal                                                    | 863                                                            | 25.57                                                          | 745                                                            | 37.93                                                          |
| Total                                                          | 31843                                                          | 1,277.35                                                       | 57890                                                          | 2,316.14                                                       |

Source: RXIL