Mumbai: The Receivables Exchange of India (RXIL) on Friday said Hindustan Aeronautics (HAL) has become the first public sector enterprise to make a transaction on the “TReDS platform”.
According to the NSE-SIDBI joint venture, TReDS is an online electronic institutional mechanism for facilitating the financing of trade receivables of micro, small and medium enterprises (MSME) through multiple financiers.
“Hindustan Aeronautics Ltd (HAL) executed its first digitized invoice discounting transaction on RXIL TReDS platform, when it accepted the digital invoice uploaded by Narendra Udyog, a Nasik based MSME (micro category) vendor earlier this week,” a statement from RXIL said.
“This makes HAL the first PSU to transact on TReDS across platforms. The transaction was financed by Bank of Baroda and since stands settled,” it added.
Last year, the central government mandated all major PSUs to join TReDS platform to facilitate payments to MSME vendors.
RXIL is a TReDS platform operating since January 2017 and is promoted by the National Stock Exchange, Small Industries Development Bank of India, State Bank of India, ICICI Bank and Yes Bank.