HDFC Bank and M1xchange have partnered to help the private lender enter the Trade receivables Discounting System (TReDs) platform.
This will mark HDFC Bank’s debut in TReDs platform and is expected to bring in high liquidity to buyer corporates and MSMEs at competitive interest rates.
TReDS is an innovative system conceived and regulated by RBI that enables financing MSMEs at competitive rates to address challenges of delayed payments to MSMEs.
Sundeep Mohindru, MD & CEO -M1xchnage is of the view that HDFC Bank will benefit from partnering with M1xchange with shorter TAT and lower admin costs in booking additional New-to-Bank (NTB) corporate buyer relationships.
He applauded HDFC Bank on their forward-thinking decision to join TReDS and extended a warm welcome to M1Xchange.
HDFC Bank counterpart, Vijay Mulbagal, Senior Executive VP, Head MNC Coverage & Supply Chain Finance, India, Head Corporate Bank (western region) said, “This partnership is expected to bring in more liquidity and enhance adoption of TReDS among a wider number of Corporate Customers and MSMEs.”
The platform looks to increase its footprints in digital factoring by 25 per cent to 30 per cent in current fiscal alone and this partnership with HDFC Banks gives it a fillip.
Last week M1xchange had announced that it has started testing of ‘Small-Small Factoring’ product in partnership with YES BANK and RBL Bank under RBI’s third cohort of regulatory sandbox.