Receivables Exchange of India

-TReDS
What is RXIL

What is TReDS

How does TReDS operates

Benefits for MSMEs & Corporate Buyers

How to use the TREDS platform post registering

What Fee / Charges are applicable

Calculation of Cost

How to Register

2
RXIL- Receivables Exchange of India Limited
It is a company promoted by

Formed based on the guidelines of RBI for TReDS

RXIL operates TReDS platform

RXIL has got India’s 1st TReDS license

India’s first TReDS transaction is done on RXIL TREDS platform in Jan 2017

Registrations: 7000+ MSME vendors, 600+ Buyers, 40+ Financiers

3
 Background & Evolution of TReDS

Dates Details

• Financial Sector Reforms (FSR) Committee

2008 • NTREES - Trade Receivables Engine for E-discounting
• Mexican model (National Financiers – NAFIN)

• RBI had issued guidelines on TReDS

Dec, 2014 • Called applications from interested parties for setting up the TReDS exchange
• SIDBI-NSE have applied along with other parties

Dec, 2015 • RBI in principle approval to SIDBI-NSE

• To operate TReDS as per the guidelines and under the PSS Act, 2007

Feb, 2016 • SIDBI & NSE jointly formed Receivables Exchange of India Ltd (RXIL).

Dec, 2016 • Final Approval from RBI to SIDBI-NSE Joint Venture- RXIL
• Other share holders joined as investors in RXIL

Jan, 2017 • RXIL successfully executed 1st TReDS transaction.

 RXIL - Shareholders

Shareholders

Small Industries Development Bank of India (Promoter)

NSE Strategic Investment Corporation (Promoter)

State Bank of India

SBI Capital Markets Ltd.

ICICI Bank Limited

ICICI Securities Ltd

YES Bank Limited

5
TREDS- Trade Receivables Discounting System

TReDS is a digital platform for MSMEs to auction their trade receivables at competitive rates
through online bidding by Financiers
TReDS scheme
 Conceptualized by RBI through its TREDS Guidelines

 The scheme is to setup and operate an institutional mechanism (called TREDS Platform) for financing of
trade receivables of MSMEs (Bill Discounting / Factoring)

 The financing is done through multiple financiers registered on TREDS platform (Banks/Factoring companies)

 TREDS is Online Digital Platform or a Market place which brings together Buyers, MSME Sellers and
Financiers.

6
 How does TREDS operates?
Buys goods/services from
seller and has to pay at the
end of the credit period

1 Buyer
RXIL enables buyers to accept RXIL settles repayment 3
invoices uploaded by sellers from buyer to financier

RXIL enables financiers to buy invoices from Financier

Seller
sellers and also settles the payment from
Provides goods / services to financier to Sellers “Buys” seller’s invoices and
large buyers and raises invoice assumes ownership of
on buyer for payment after 2 receivables to be paid by buyer
credit period on due date 7
Why am I registering? What are benefits for me as MSME?
Sellers receive
MSMEs are not
funds against
48 restricted to a single
approved invoices
bank. Have the option
within 48 hours
to choose the lowest
without any
Quicker Multiple bids among the
administrative
Payments Financiers multiple financiers
costs

No obligation on the
Without
seller to repay the Recourse
financier. The buyer’s Borrowing
account is debited
automatically through
a pre-approved NACH
mandate. 
Lower Cost Transparent bidding process
of Funds to discover the most suitable
price. Sellers can access
financing at competitive
terms as it is based on the
credit rating of the buyer.

Sellers

8
 Key Benefits – Buyer

MSMED Act, 2006

• Ensures Compliance by Buyer

Auction

• Competitive Price Discovery

Cost

• Lower Supply Chain Cost

Efficient Working Capital

• Manage Cash Flows

Alternate Financing

• Flexibility for Buyer & its subsidiaries

MSME Vendors

• Stable Supplier Base

9
 How to use the TREDS platform post registering?
Counterparty
Shipment of Goods Seller/Buyer Uploads
(Buyer/Seller) Accepts
from Vendor to Buyer Invoice
Invoice Online

Buyer

Link RXIL Generates Cost Bearer In Auction - Financiers

Obligations (Seller/Buyer) Accepts Bid
Bid

Seller

Cost Bearer, Credit Leg1 – Financier Pays

Leg2 – Buyer Pays
Leg3 – Buyer Pays
Financier
Period, Extended Vendor (T+1)
(Due Date)
Vendor (Unfinanced)

Credit Period 10
What Fee / Charges are applicable?

Fee
Registration Fee (Presently waived for MSMEs)
Annual Fee (starts on completion of 1 year from registration)

Charges
Interest Charges (quoted by Financiers)
Transaction Charges of platform

11
Cost Calculation

Interest Rate Bids

Depends on the Credit Rating of the Buyer & Financiers internal policies
Financiers rates are linked with risk associated with the Buyer.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
--

Example
 Bill/Invoice Amount 1,00,000/-
 Credit period 45 days
Interest Cost Platform Transaction Charges
Bid Accepted: Standard charge: (Min Rs.100/- plus GST)
6.50% | 7.00% |8.00% |6.25%| 9.00% p.a. 0.35% p.a. (Varies based on terms with Buyer)

1,00,000 x (6.25/100)x (45/365) 1,00,000 x (0.35/100)x (45/365)

Approximate Rs. 770/- will be the interest expenses Approximate Rs. 43/- +GST
(Rs.100+GST will be transaction charges)
12
 Digital Onboarding & Registration Process

Registration Entity KYC Individuals & KYC Statutory & Financials Bank Details
 Authorization &  PAN Card  Detail of  Annual Report (2 years),  CC/OD Bank a/c details
Application form Proprietor/Director/Partner ITR, Account Statement
 Activity Proof  Cancelled Cheque Leaf
 Name of Authorized Official
 Master Agreement with  Address Proof  GST Reg. No, Udyog
(Official who is going to
Rs.600/- Stamp Papers Aadhar/UDYAM,
execute the Master
Agreement with RXIL)  CA certificate
 Name of Administrator
(Official who will get access Online Registration Process
of the Platform through
Login ID & Password)
Online Registration Process
 Admin can create other
users for the platform and
assign them various roles to
use the platform
 Identity Proof
 Address Proof

–
 PP size Photo,
Signature verification form
EE*
Banker, if req)
– FR
https://rxil.in https://onboarding.rxil.in/customerapp/home
* Upto 31st March 2021. 13
Master Agreement

Template is available in Template Section

To be executed with Rs.600/- Stamp Papers

RXIL can arrange for the stamp papers on payment of Rs.600/- to RXIL account

Aadhar OTP based Digital Signing process is available with RXIL

DSC available with you is also accepted

14
 CONTACT US

Corporate Office:
701-702, 7th Floor, Supremus – E wing, I-Think Techno Campus,
Kanjurmarg East, Mumbai – 400042. Maharashtra.

Delhi
(022) 4077 1424; 4077 1426

info@rxil.in Kolkata

Hyderabad

Mumbai
Online Registration Process Corporate Office
Chennai
https://onboarding.rxil.in/customerapp/home
Bengaluru
My Connects
Mandar Hukeri
Email : mandar.hukeri@rxil.in
Cell Number: 9819611681

Follow us on

DISCLAIMER
This document has been fully prepared, but it has been written in general terms and should be seen as broad guidance only. This document cannot be relied upon to cover specific situations and you should not act, or refrain from
acting, upon the information contained therein without obtaining specific professional advice. Please contact RXIL to discuss these matters in the context of your circumstances. RXIL, its partners, directors, employees and agents do
not accept or assume any liability or duty of or any loss arising from any action taken or not taken by anyone in reliance on the information in this document or for any decision based on it.