Consider the following statements about the Trade Receivables Discounting System (TReDS) platform: 1. It is an online bill discounting platform that helps cash-starved micro, small and medium enterprises (MSMEs) raise funds by selling their trade receivables to corporates. 2. The concept of TReDS, to facilitate the financing of trade receivables of the MSMEs, was introduced by the Reserve Bank of India (RBI). Which of the statements given above is/are correct?

• The Trade Receivables Discounting System (TreDS) is an online bill discounting platform that helps cash-starved micro, small and medium enterprises (MSMEs) raise funds by selling their trade receivables to corporates.

• The concept of TReDS, to facilitate the financing of trade receivables of MSMEs, was introduced by the Reserve Bank of India (RBI) in 2014. Accordingly, the RBI, in 2017, issued licence to three players: the Receivables Exchange of India Ltd (RXIL), a joint venture between the Small Industries Development Bank of India (SIDBI) and the National Stock Exchange of India Limited (NSE); Invoicemart, promoted by A Treds Ltd (a joint venture of Axis Bank and mjunction services); and MIXchange, promoted by Mynd Solutions Private Limited.

• One of the distinguishing features of TReDS is that the sellers (MSMEs) of receivables are not required to give any collateral and will have no recourse to them in case of defaults.

• The TReDS platform not only ensures the regular flow of operational funds to the MSMEs at attractive interest rates, but also ensures that their working capital limits are not affected, as these are ‘off balance sheet finance’. It also helps corporates comply with the MSME Act, under which a buyer has to pay the MSME supplier within 45 days.