Mumbai, April 8 -- The Reserve Bank of India on Wednesday proposed easing onboarding rules for small businesses on trade receivables discounting system (TReDS) platforms that provide instant working capital to these entities.

These RBI-regulated digital platforms enable micro, small and medium enterprises (MSMEs) to discount their trade receivables (invoices) and get instant working capital from lenders-banks and non-banks, without collateral. Primary TReDS platforms in India are RXIL (Receivables Exchange of India), M1xchange (Mynd Solutions), and Invoicemart.

"In order to promote ease of doing business for MSMEs and to encourage their greater participation on TReDS, it is proposed to dispense with the requirement of due diligence of M...