What changed
RBI finalised the Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026 after public consultation on the draft placed on April 08, 2026. Key changes include removal of due diligence requirements for MSME sellers and revision of capital requirements for TReDS operators. The directions take effect immediately unless specified otherwise.
What it means for you
Banks and lenders on TReDS can expect streamlined operations with reduced compliance burden for MSME sellers. Revised capital norms may affect operator solvency requirements. The framework aims to enhance efficiency while giving authorised entities flexibility in operational guidelines.
What you must do
- Review the final TReDS Directions 2026 for updated capital and due diligence requirements.
- Update internal policies to align with the removal of MSME seller due diligence.
- Assess impact on TReDS participation and adjust operational procedures accordingly.
Who it affects
TReDS operators, MSME sellers, Banks and financial institutions participating in TReDS
When do the new TReDS directions take effect?
The directions are effective immediately from the date of issuance, June 23, 2026, unless otherwise specified in the document.