What changed
RBI replaced the earlier TReDS guidelines (updated July 2018) and related circulars with a single Master Direction. Key changes include aligning capital norms for authorized entities with other non-bank payment system operators, simplifying MSME seller onboarding, and permitting financiers to use credit guarantee cover for TReDS exposures.
What it means for you
Financiers can avail credit guarantee cover for TReDS exposures as permitted by the direction. The direction simplifies MSME seller onboarding, which may facilitate greater participation. Aligning capital requirements with other non‑bank payment system operators standardises regulatory expectations.
What you must do
- Review and update internal policies to align with the new Master Direction's capital and onboarding requirements.
- Assess eligibility and process for availing credit guarantee cover on TReDS exposures.
- Ensure MSME seller onboarding processes are simplified as per the new guidelines.
- Verify that your TReDS platform operations comply with the revised authorisation and reporting norms.
Who it affects
TReDS platform operators, Financiers (banks, NBFCs) participating in TReDS, MSME sellers using TReDS, Buyers on TReDS platforms
When do these directions take effect?
The directions are effective immediately from the date of issuance, June 23, 2026.
Does this change the definition of MSME sellers on TReDS?
No, the definition remains as per the MSMED Act, 2006. The direction simplifies onboarding but does not alter the eligibility criteria.
Can financiers now get credit guarantee on all TReDS exposures?
The direction permits financiers to avail credit guarantee cover for exposures undertaken on TReDS, subject to the terms of the guarantee scheme.