Reserve Bank of India (RBI) issued its final directions on Trade Receivables Discounting System for MSMEs pursuing to simplify the system, on June 23 2026.The banking regulator fixed a minimum net worth of ₹25 crore and should get it certified by a statutory auditor to provide discounting services. Existing entities providing the service have been given a deadline of March 31 2028 to comply with the networth criterion.Trade Receivables Discounting System (TReDS) is an online platform which helps small businesses auction their invoices or trade receivables to banks and other financial institutions to unlock working capital“The platform shall facilitate efficient and seamless settlement of transactions between financier and seller for financing of trade receivables and between buyer and financier on the due date, using any authorised payment system,” the RBI said.The move seeks to help MSMEs receive payments from their customers as they might face constraints in converting their trade receivables to cash. Published - June 23, 2026 09:20 pm IST