{"id":3033,"date":"2025-03-04T09:34:56","date_gmt":"2025-03-04T09:34:56","guid":{"rendered":"https:\/\/www.dtxindia.in\/knowledge-center\/?p=3033"},"modified":"2025-11-03T06:20:01","modified_gmt":"2025-11-03T06:20:01","slug":"why-corporates-with-turnover-of-250-cr-need-to-be-aware-of-new-rbi-treds-guidelines","status":"publish","type":"post","link":"https:\/\/www.dtxindia.in\/knowledge-center\/why-corporates-with-turnover-of-250-cr-need-to-be-aware-of-new-rbi-treds-guidelines\/","title":{"rendered":"Why Corporates with Turnover of 250 Cr+ Need to be Aware of New RBI TReDS Guidelines"},"content":{"rendered":"\n<p>The Trade Receivables Discounting System (TReDS) has given the much needed impetus to businesses to manage their working capital. As per a recent mandate from the Reserve Bank of India (RBI), large corporates with a turnover exceeding INR 250 crore must register on a <a href=\"https:\/\/www.dtxindia.in\/\">TReDS platform<\/a>. These regulations are meant to streamline financial processes and ensure a steady cash flow ecosystem for Micro, Small, and Medium Enterprises (MSMEs).<\/p>\n\n\n\n<p>After RBI\u2019s mandate, it is imperative for businesses to understand the implications of TReDS. This blog is an attempt to simplify TReDS, its guidelines, and how <a href=\"https:\/\/www.dtxindia.in\/what-is-treds\/\">TReDS registration <\/a>will benefit the entire ecosystem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Understanding TReDS And Its Significance<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\">Onboarding onto a TReDS platform is now a regulatory compliance. It creates a win-win situation for all stakeholders, buyers, MSMEs, and financiers by improving cash flow efficiency and financial stability.<\/h2>\n\n\n\n<h4 class=\"wp-block-heading\">For MSMEs<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Access to funds: Sellers get immediate working capital by selling their invoices.<\/li>\n\n\n\n<li>Lower financial burden: No collateral or additional debt, as factoring is based on unpaid invoices.<\/li>\n\n\n\n<li>Regulatory protection: TReDS platforms operate under RBI guidelines, ensuring security, transparency, and fair practices.<\/li>\n\n\n\n<li>Faster approvals: Digital processes reduce paperwork and speed up the entire process.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">For Corporates:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Better relationships \u2013 Timely payments result in better trust and working relationship with MSME sellers.<\/li>\n\n\n\n<li>Optimised cash flow \u2013 Invoice discounting enables better working capital management, reducing the burden of short-term liabilities.<\/li>\n\n\n\n<li>Cost savings \u2013 MSMEs come up with competitive pricing to improve liquidity, leading to cost efficiencies for corporate buyers.<\/li>\n\n\n\n<li>Operational efficiency \u2013 Digital platform reduces administrative workload.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">For Financiers:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Access to quality invoices \u2013 TReDS gives financiers a steady flow of low-risk and verified invoices from creditworthy corporate <a href=\"\/buyers\/\">buyers<\/a>.<\/li>\n\n\n\n<li>Investment opportunities \u2013 Financiers earn competitive returns by financing MSME invoices at discounted rates.<\/li>\n\n\n\n<li>Portfolio diversification \u2013 Getting a wide range of MSME receivables reduces risk concentration and enhances financial stability.<\/li>\n\n\n\n<li>Transparent transactions \u2013 Being a digital platform, TReDS ensures transparency, reducing credit and operational risks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Through TReDS, corporates can strengthen their supply chains, while financiers gain access to secure, high-yield investment opportunities creating a win-win ecosystem for all stakeholders.<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\">New RBI TReDS Guidelines: What Corporates Must Know<\/h2>\n\n\n\n<p>Recent RBI guidelines have mandated for large corporates to register on the TReDS platform and use it for seller payments. Here is a simplified guideline for the same::<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>TReDS Registration:\n<ul class=\"wp-block-list\">\n<li>Companies generating revenues over INR 250 crore or more must register on a TReDS portal.<\/li>\n\n\n\n<li>Failure to complete TReDS registration may lead to compliance issues.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Timely Processing Of Invoices On TReDS:\n<ul class=\"wp-block-list\">\n<li>All MSME seller invoices must be uploaded, approved by the buyer and processed through the TReDS platform to enable timely payments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Better Creditworthiness:\n<ul class=\"wp-block-list\">\n<li>The TReDS platform brings stronger financial discipline through structured payments to MSME vendors.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Digital And Transparent Financing:\n<ul class=\"wp-block-list\">\n<li>The fully digital ecosystem for trade financing, establishes transparency in transactions.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">The Time To Act Is Now&nbsp;<\/h2>\n\n\n\n<p>The last date to onboard a TReDS portal is March 31, 2025, failing which penalties and compliance violations may occur. Read on to know why it is time for corporates to act now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Regulatory Compliance And Avoidance Of Penalties<\/h3>\n\n\n\n<p>Corporates failing to complete their TReDS registration or neglecting invoice processing through the platform may face regulatory actions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Better Relationships With The Sellers<\/h3>\n\n\n\n<p>Timely payments through the TReDS portal improve trust and relationships with MSME <a href=\"\/sellers\/\">sellers<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Improved Cash Flow Management<\/h3>\n\n\n\n<p>Through the TReDS portal, corporates can efficiently manage cash flow without depleting their working capital.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Get Competitive Financing Options<\/h3>\n\n\n\n<p>TReDS platform allows multiple financiers to bid for invoices, corporates benefit from competitive financing rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Improved Brand Reputation And Market Perception<\/h3>\n\n\n\n<p>Complying with TReDS regulations demonstrates responsible corporate governance and integrity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Guide For Corporates On TReDS Onboarding<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Choose An Approved TReDS Platform<\/h3>\n\n\n\n<p>RBI has authorised a couple of TReDS platforms. One of them is DTX. DTX offers a simple, fast and easy to use UI\/UX. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Register On The TReDS Portal<\/h3>\n\n\n\n<p>On a TReDS portal like DTX, corporate buyers have to provide basic business details, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Legal entity name and registration details<\/li>\n\n\n\n<li>PAN and GST identification numbers<\/li>\n\n\n\n<li>Official contact details<\/li>\n\n\n\n<li>Bank account information<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Submit Documentation<\/h3>\n\n\n\n<p>After giving all the necessary details, corporates need to upload the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Certificate of Incorporation<\/li>\n\n\n\n<li>Board resolution authorising participation in TReDS<\/li>\n\n\n\n<li>KYC details of authorised personnel<\/li>\n\n\n\n<li>Recent financial statements<\/li>\n<\/ul>\n\n\n\n<p>*<em>A full list of documents will be provided at the time of registration.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Verification And Approval<\/h3>\n\n\n\n<p>After document submission, they are reviewed for compliance checks. Once these documents are verified, registration on TReDS portal is approved. This process typically takes a few business days, depending on the submitted documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5: Start Approving MSME Invoices<\/h3>\n\n\n\n<p>Once onboarded, corporates have to approve invoices submitted by their MSME sellers, allowing banks, NBFCs and financiers to finance them as per their needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">For More Efficient Business, Onboard TReDS<\/h2>\n\n\n\n<p>Today, leveraging the <a href=\"https:\/\/www.dtxindia.in\/what-is-treds\/\">TReDS portal<\/a> helps corporates to strengthen their financial ecosystem, and improve creditworthiness.<\/p>\n\n\n\n<p>By adopting the TReDS platform, businesses not only comply with regulatory directives but also build a more transparent and financially stable supply chain. In today\u2019s competitive business landscape, complying with financial regulations can make a significant difference in long-term success.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Trade Receivables Discounting System (TReDS) has given the much needed impetus to businesses to manage their working capital. As per a recent mandate from the Reserve Bank of India (RBI), large corporates with a turnover exceeding INR 250 crore must register on a TReDS platform. These regulations are meant to streamline financial processes and&#8230;<\/p>\n","protected":false},"author":2,"featured_media":3034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-3033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/comments?post=3033"}],"version-history":[{"count":3,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3033\/revisions"}],"predecessor-version":[{"id":3650,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3033\/revisions\/3650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/media\/3034"}],"wp:attachment":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/media?parent=3033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/categories?post=3033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/tags?post=3033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}