Economics · Banking and Financial Institutions
As per the operational guidelines of the Trade Receivables Discounting System (TReDS) in India, which of the following is a mandatory requirement for a transaction to be successfully completed on the platform?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1TReDS platforms are prohibited from allowing banks to participate as financiers; only private money lenders are permitted.
- 2The MSME seller must have a minimum annual turnover of 500 crore rupees to be eligible to use the TReDS platform.
- 3The transaction must involve the digital acceptance of the invoice by the buyer, which then creates a legally binding 'Factoring Unit.'✓
- 4The corporate buyer must provide a physical cheque to the MSME seller before the invoice is uploaded to the portal.
Correct answer
The transaction must involve the digital acceptance of the invoice by the buyer, which then creates a legally binding 'Factoring Unit.'
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