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.
Related Stories
RBI commences first Test Phase of Regulatory Sandbox retail payments
Two entities are testing offline e-payment facility for remote locations in the country
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.