Money & Banking

RXIL eyes ₹1,000-crore of transactions by Jan-Feb

Mumbai | Updated on November 13, 2020 Published on November 13, 2020

With business getting back to normal and larger number of players onboarded, Receivables Exchange of India Ltd (RXIL) is confident that transactions on TreDs will touch ₹700 crore in November, but says that more companies, particularly public sector firms, need to start transacting on the platform.

“In November, we expect to do ₹700 crore with Diwali. We are expecting that by January or February next year, we should do about ₹1,000 crore of transactions. Business is getting back to normal,” said Ketan Gaikwad, Managing Director and CEO, RXIL.

Transactions on RXIL’s platform had fallen to just about ₹70 crore in April after the national lockdown, but started picking up from June and July.

RXIL, which is a joint venture between SIDBI and NSE, is the first of the three Treds platforms in the country. Trade Receivables Discounting System, or Treds, is an electronic platform for financing and discounting of trade receivables of MSMEs through multiple financiers.

Digital payments

In an interaction with BusinessLine, Gaikwad said the disruption has helped in expediting the digitisation of payments. It also gave RXIL the opportunity to talk to companies and MSMEs to register on the platform and start transacting.

“A lot more corporates have started transacting on the platform now. They have realised that for sustaining the ecosystem, they need to support MSMEs. The advantage is that you can make immediate payments to MSMEs and can also extend the payment cycle to 180 days,” he pointed out.

However, the potential of the platform is much higher, and a lot more corporates andpublic sector companies, need to start transacting on the platform, he said, adding that they are working with the government to see if it can be made mandatory for all PSUs to transact on Treds.

Gaikwad said just about 7 per cent to 8 per cent of payments are being done through the platform, though at least 1 lakh crore of discounting can happen through Treds.

In 2018, the government had made it mandatory for all Central PSUs and companies – with a turnover of ₹500 crore – to join the Treds platform. The MSME Ministry had recently also reminded companies to register and transact on the platform.

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Published on November 13, 2020
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