Current Affairs · Banking and Finance
An automobile manufacturer registered on the Trade Receivables Discounting System (TReDS) platform accepts a digital invoice uploaded by an MSME supplier. The invoice is subsequently discounted by a bank on the platform. If a commercial dispute regarding defective goods arises later between the buyer and the supplier, what is the legally prescribed outcome under TReDS regulations?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The discounting bank can sue the regulatory authority for allowing a defective commercial invoice to be uploaded.
- 2The TReDS platform automatically reverses the transaction and returns the funds from the MSME to the bank.
- 3The buyer is legally obligated to make the full payment to the discounting bank on the due date; commercial disputes must be settled independently outside the platform.✓
- 4The discounting bank can automatically deduct the disputed amount from the MSME's current account.
Correct answer
The buyer is legally obligated to make the full payment to the discounting bank on the due date; commercial disputes must be settled independently outside the platform.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Current Affairs?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Banking and Finance MCQs →Want more practice questions on Banking and Finance?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Current Affairs · Banking and Finance