RBI granted in-principle approval to three applicants for setting up TReDS

370

Who: In-principle approval for setting up Trade Receivables Discounting System
What: Granted to three applicants by RBI
When: 24 November 2015

The Reserve Bank of India (RBI) on 24 November 2015 granted in-principle approval to three applicants to set up and operate Trade Receivables Discounting System (TReDS).

The three organisations have been asked to set and operate TReDS in accordance to the Guidelines issued on 3 December 2014 under the Payment and Settlement System (PSS) Act 2007.

Organisations to which in-principle approval was granted are
• NSE Strategic Investment Corporation Limited (NSICL) and Small Industries Development Bank of India (SIDBI), Mumbai
• Axis Bank Limited, Mumbai
• Mynd Solutions Pvt. Ltd., Gurgaon, Haryana

The in-principle approval granted will be valid for a period of 6 months, during which time the applicants have to comply with the requirements under the Guidelines and fulfill the other conditions as may be stipulated by the Reserve Bank.

On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of in-principle approval, the RBI would consider granting to them a Certificate of Authorisation for commencement of the business of TReDS.