A wide range of medium and small businesses can participate in the government's Trade Receivables Discounting System following relaxation of guidelines to be a part of it, according to the chairman of India's largest lender.
Dinesh Khara, chairman of State Bank of India, said the portal included 22 new public sector companies, along with an anticipated 7,000 additional corporates. This will aim at facilitating smoother receivable finance, he said.
TReDS is an electronic platform that enables the financing or discounting of trade receivables of micro, small and medium enterprises through multiple financiers.
Khara said the Union budget, presented by Finance Minister Nirmala Sitharaman on Tuesday, was inclusive, focused on rural development, MSMEs, and had initiatives aimed at enhancing skill development to push India towards becoming a developed nation by 2047.
The budget prioritises climate finance and renewable energy initiatives, among others, which will enhance economic growth and sustainability efforts, he said.
During the Covid-19 pandemic, the government's first-loss guarantee encouraged banks to provide support and lending to MSMEs, he said, adding that this assistance boosted the sector significantly.
Khara also expressed optimism about the Union government-funded infrastructure projects in Andhra Pradesh and Bihar. "Infrastructure project helps to stimulate economic opportunities due to its multiplier effect."
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