New Delhi, June 23 -- The Reserve Bank of India (RBI) on Tuesday eased onboarding rules for small businesses on trade receivables discounting system (TReDS) platforms, which provide instant working capital to these entities.

The central bank said the final framework, which comes into effect immediately, is aimed at making the system more efficient while reducing compliance burdens. "Feedback from the public has been examined and suitably incorporated in the final directions," the RBI said. The RBI had released a draft framework in April, seeking industry comments.

In the final framework, the RBI streamlined capital requirements for authorized entities with those of other non-bank payment system operators (PSOs), simplified the onboardin...