Mumbai, Oct 4 () Gurgaon-based Mynd Solutions will launch Online National Exchange for Receivables over the next three months, its CEO said.
"We have received Reserve Bank of India's (RBI) in-principle approval to implement 'TReDS' (Trade Receivables Discounting System). We have created M1 Mynd Online National Exchange for Receivables, which will be operational in next 2-3 months period," Mynd Solutions CEO Sundeep Mohindru told here.
In November last year, RBI gave in-principle approval to three entities, namely a joint venture between the National Stock Exchange's NSE Strategic Investment Corporation Limited (NSICL) and Small Industries Development Bank of India (SIDBI), private sector lender Axis Bank and Mynd Solutions, to start a new TReDS system.
TReDS will allow SMEs to post their receivables on the system and get them financed.
The use of TReDS is aimed at improving the flow of funds to micro, small and medium enterprises (MSMEs) by reducing the receivables realisation cycles. TReDS will allow SMEs to post their receivables on the system and get them financed.
"We have invested around Rs 25 crore for setting up M1 Exchange, which is partly funded by Sidbi VC fund and internal accruals," Mohindru said.
Talking about the new entity, Mohindru, "The manual bill discounting market size currently stands at Rs 30,000 crore annually, With the online system coming in place, it is only expected to grow manifold in the years to come. This will change the way of business dealings between suppliers and corporates by taking the whole process online and making it seamless."
Online terminals will be offered to corporates, MSMEs and the bankers to transact on the platform. Charges will be levied per transaction and will be decided in due course as per the market conditions.
The exchange will enable the availability of funds to MSMEs segment at a much lower rate of interest in comparison to the offline market, he said. AP NP MR
Source: Times of India