Axis Bank Ltd.

Reserve Bank of India (RBI) has granted in-principle nod to three entities including Axis Bank for setting up of a Trade Receivables Discounting System (TReDS). TReDS will allow SMEs to post their receivables on the system and get them financed. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time.

The ‘in-principle’ approval granted will be valid for a period of 6 months, during which time the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the Reserve Bank. On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of ‘in-principle’ approval, the Reserve Bank would consider granting to them a Certificate of Authorisation for commencement of the business of TReDS.

Axis Bank is the third largest private sector bank in India. The bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.