Hindustan Aeronautics Limited becomes first Public Sector Unit (PSU) to make a transaction on “TReDS platform”

The Hindustan Aeronautics Limited (HAL) has become the first Public Sector Unit (PSU) to make a transaction on the “TReDS platform”. The transaction was financed by Bank of Baroda (BoB) and since stands settled. The TReDS platform is an online electronic institutional mechanism for facilitating the financing of trade receivables of Micro, Small and Medium Enterprises (MSME) through multiple financiers. The acronym ‘TReDS’ stands for Trade Receivables Discounting System. In October 2017, the central government mandated all major PSUs to join TReDS platform to facilitate payments to MSME vendors. RXIL (Receivables Exchange of India), which is India’s first TReDS platform, is promoted by the National Stock Exchange, Small Industries Development Bank of India, State Bank of India, ICICI Bank and Yes Bank.