On June 26, 2020 Small Industries Development Bank of India(SIDBI) has informed that it has set up ‘Swavalamban Crisis Responsive Fund’(SCRF), an open-ended fund to facilitate free onboarding of Micro, Small and Medium Enterprises(MSMEs) on Trade Receivables Discounting System(TReDS) platform.
i.The SCRF is under Swavalamban Resource Facility, where SIDBI partners with the Department for International Development (DFID), United Kingdom.
ii.The free onboarding of MSMEs will be available till September 30, 2020. SIDBI targets to onboard 10,000 MSME during the period.
iii.Generally, an MSME must pay a fee of Rs 5,000 to Rs 10,000 to register on a TReDS platform. Now, this fund will be utilised to offset the cost of registration fee.
i.TReDS is an electronic platform where receivables of MSMEs are drawn against buyers like large corporates, public sector undertakings and government departments among others. They are financed by multiple financiers at competitive rates through an auction mechanism.
ii.The 3 TReDS platforms are Receivables Exchange of India Ltd.(RXIL), M1xchange and Invoicemart. It enables MSMEs to access the working capital through invoice discounting via multiple financiers.
Headquarters– Lucknow, Uttar Pradesh
Chairman & Managing Director– Mohammad Mustafa