RBI allows guarantee cover for TReDS financing in fresh directions
Awaiting price reaction for this filing.
The RBI issued revised Trade Receivables Discounting System (TReDS) Directions, 2026, effective immediately, permitting financiers to obtain guarantee cover from government-set credit guarantee fund trusts and allowing insurance cover for TReDS exposures. The framework also permits further discounting and re-discounting of receivables, strengthens legal enforceability of accepted factoring units, mandates CERSAI registration, and retains a minimum net-worth requirement of Rs 25 crore for platform operators with a compliance deadline of March 31, 2028. The changes aim to reduce credit risk for financiers, improve liquidity in receivables financing, and better support MSMEs in converting invoices into working capital.