Money & Banking

RXIL, Tata AIG initiate trade credit insurance in sandbox environment

Our Bureau Mumbai | Updated on November 19, 2020 Published on November 19, 2020

Adoption of trade credit insurance on TReDS will pave the way for a completely digital bite-sized credit insurance model

Receivables Exchange of India Ltd (RXIL) initiated a Trade Credit Insurance (TCI) backed transaction with Tata AIG as the insurer and ICICI Bank and Yes Bank as the financiers in a sandbox environment.

“This is the first time a TReDS platform has tested the efficacy of TCI backed transaction, improving the ability of financiers in assigning credit limits to corporates. TCI, once implemented post regulatory approvals, will enable financiers to discount the invoices drawn on lower-rated corporate buyers, by their MSME sellers and will improve the liquidity from lenders,” RXIL said in a statement on Thursday.

The adoption of Trade Credit Insurance on TReDS will pave the way for a completely digital bite-sized credit insurance model, it further said.



Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on November 19, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.