Since rolling out in 2017, the Receivables Exchange of India (RXIL) has cumulatively enabled financing of over ₹2.82 trillion across more than 16 million invoices, supporting over 59,000 micro, small and medium enterprises (MSMEs) with over 3,300 buyers, and more than 70 financiers on the platform. RXIL is the country’s first Trade Receivables Discounting System (TReDS) — a Reserve Bank of India (RBI) initiative — to solve the problem of delayed payments for MSMEs. Ketan Gaikwad, managing director (MD) and chief executive officer (CEO) of RXIL, speaks in an email interview with Raghu Mohan about the potential of TReDs and issues involved. Edited excerpts:

What will it take to achieve the goal to onboard a million firms on to the TReDS platforms over the next two years?

The TReDS reforms announced in the Union Budget will accelerate MSME participation. When large buyers and government procurement platforms participate, their vendor ecosystems, largely consisting of MSMEs, get onboarded. The onboarding process has also become highly streamlined. If MSMEs have the required documents ready, registration on TReDs can be completed in less than 10 minutes. However, policy support and technology alone are not enough. Continuous awareness and outreach are equally important. Many MSMEs are still unaware that they can unlock working capital by discounting approved invoices without providing additional collateral. Another key factor will be deeper participation from lenders. As more of them participate actively on TReDS platforms, liquidity improves and competitive bidding ensures that MSMEs receive financing at competitive rates. With supportive reforms, simplified onboarding, and stronger ecosystem participation, onboarding a million MSMEs on TReDS platforms over the next two years is an achievable goal.