New Delhi, Jan 10 (UNI) Public sector lender Bank of India (BoI) on Wednesday said it has entered into an Memorandum of Understanding (MoU) with Receivables Exchange of India Ltd (RXIL) as a Trade Receivables Discounting System (TReDS) partner for discounting invoices of MSMEs on digital platform.
Speaking on the development, Dinabandhu Mohapatra, MD and CEO, BOI emphasized on the importance of MSME sector, the backbone of Indian economy and thrust given by the government for promoting the MSME sector.
Kashinath Katakdhond, MD and CEO, RXIL said, “We are delighted to partner with Bank of India.”
RXIL is a joint venture between SIDBI and NSE, set up to operate a TReDS Platform for factoring of invoices of the MSMEs in compliance of guidelines issued by RBI.
TReDS is a digital platform to help MSMEs to get their trade receivables financed at a competitive rate through an auction mechanism.
This will allow MSMEs to have easy and hassle free access to finance and prompt realization of their receivables.