Focus on educating potential stakeholders

The TReDS platform provides a win-win situation to all its stakeholders — buyers, sellers and financiers. Being regulated by the RBI, it provides a lot of comfort to financiers and helps them embrace the platform and build a close working relationship. The platform helps financiers meet their PSL requirement, target “new to bank clients” and help MSMEs in better and faster access to liquidity. I like M1xchange’s workflows, systems and procedures driven on its TReDS platform. It gives confidence to lenders that the company is regulated by the RBI. One notable feature of this platform is that digital signature is a must for every transaction

authorisation. This helps tighten the overall legal framework. As the transactions are increasing, it is important for M1xchange to keep working towards increasing the check on authenticity of transactions.

M1xchange also should spend more time informing and educating the potential stakeholders, especially large corporates and PSUs. If more corporates join this platform, all their vendors (MSMEs) are likely to follow the suit.