Jaipur, Oct. 8 -- Rajasthan's Department of Industries and Commerce has signed agreements with M1xchange and Receivables Exchange of India Ltd (RXIL) to expand adoption of the Trade Receivables Discounting System (TReDS) among micro, small and medium enterprises (MSMEs), aiming to address delayed payments and improve access to working capital.

TReDS enables MSMEs to convert accepted invoices into early payments by allowing authorised financiers to discount receivables at competitive rates. This can reduce dependence on costly short-term borrowing and help smaller firms manage wages, raw material purchases and production.

The initiative comes amid stronger regulatory focus on payment discipline. A November 7, 2024 notification made TReDS...