Current Affairs · Banking Regulation & Trade Receivables
Under the Trade Receivables Discounting System (TReDS) guidelines updated by the Reserve Bank of India, which of the following statements accurately describes the regulatory parameters?
- 1Mandatory onboarding is for companies with turnover above 100 crore, settlement is under the Negotiable Instruments Act, and the Board manages the Credit Guarantee Fund.
- 2Mandatory onboarding is for all MSMEs regardless of turnover, settlement is under the Contract Act, and the Board is headed by the Finance Minister.
- 3Mandatory onboarding is required for specified government companies and buyers with a turnover above 250 crore, settlement finality is derived from the PSS Act 2007, and the PSS Act framework constitutes the Payments Regulatory Board.✓
- 4Mandatory onboarding applies to companies with a turnover above 500 crore, settlement is governed under the Factoring Act 2011, and the Board regulates only UPI.
Correct answer
Mandatory onboarding is required for specified government companies and buyers with a turnover above 250 crore, settlement finality is derived from the PSS Act 2007, and the PSS Act framework constitutes the Payments Regulatory Board.
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