Invoices raised on Sobha, West Coast Paper, Intex Technologies, Future Retail and other corporates by their MSME suppliers were discounted by Axis Bank, to mark the commencement of operations.
Invoicemart is a platform created by A.TREDS, a joint venture of Axis Bank, India-based private bank, and mjunction services, a B2B e-commerce company.
TReDS is an attempt by the RBI and Govt. of India to improve access to finance by MSMEs through a digital platform with transparent price discovery mechanism. TReDS (Trade Receivable Discounting System) Guidelines are issued by Reserve Bank of India under Section 10(2) read with Section 18 of Payment & Settlement Systems Act, 2007 (Act 51 of 2007).
The sale of invoices will happen by way of a transparent bidding process involving multiple financiers, which will facilitate efficient price discovery, thus lowering cost of funds for MSMEs. Funds disbursed through TReDS will also qualify for priority sector lending benefits for the banks.
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