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Receivables Exchange of India Ltd (RXIL), on Tuesday, said it recorded the highest monthly transaction volume of more than ₹1,000 crore in March in terms of discounting invoices of micro, small and medium enterprises (MSMEs).
The Trade Receivables Discounting System (TReDS) platform, in a statement, said the growth in transaction volumes from ₹69 crore in April 2020 to ₹1,105 crore in March 2021 mimics the revival and resumption of economic activity.
Throughput
RXIL logged a throughput of more than ₹6,500 crore by way of discounting of invoices of MSMEs in FY21, the statement added.
On a cumulative basis, RXIL said it processed throughput of more than ₹10,000 crore since inception in 2017.
There are three constituents on a TReDS platform – sellers (MSMEs), buyers (large corporates, Central public sector enterprises, and government undertakings who buy from MSMEs), and financiers.
“It is a transparent and online auction-based price discovery platform where financing has been at interest rates as low as 3.99 per cent per annum with the average rates between 6 per cent per annum to 8 per cent per annum, resulting in reduction of interest costs for MSMEs by almost 50 per cent for their working capital funding,” said RXIL.
Promoters of RXIL
The promoters of RXIL are Small Industries Development Bank of India (SIDBI) and NSE Strategic Investment Corporation Ltd, a wholly-owned Subsidiary of NSE.
Vikram Limaye, MD & CEO, NSE, observed that TReDS enables MSMEs secure finance on the strength of their buyer’s credit rating without having to negotiate with financiers. TReDS plays a critical role in ensuring seamless liquidity to MSMEs and can play a part in filling up the credit gap.
V Satya Venkata Rao, Deputy Managing Director, SIDBI, emphasised that many MSMEs joined TReDS with the support of SIDBI’s Swavalamban Crisis Responsive Fund (SCRF), which paid their registration fees on the TReDS platform during the pandemic.
Ketan Gaikwad, MD and CEO, RXIL, said TReDS is gaining traction and helping multitudes of MSMEs receive their payments on time.
“To have an efficient working capital management and a healthy supply chain has resulted in the corporates utilising TReDS to ensure timely payments to their MSME sellers without affecting their own cashflows,” he said
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