Image Source : Analytics Insight
In a strategic move to enhance digital supply chain financing, Central Bank of India has partnered with KredX, India’s fifth RBI-regulated Trade Receivables Discounting System (TReDS) platform. The collaboration aims to streamline working capital access for micro, small, and medium enterprises (MSMEs) by leveraging KredX’s technology-first infrastructure and Central Bank’s extensive banking network. The partnership is expected to accelerate invoice discounting, improve liquidity, and foster financial inclusion across India’s industrial ecosystem.
Key Highlights From The Partnership
- KredX’s TReDS platform, branded as DTX (Domestic Trade Exchange), received RBI approval in January 2025
- Central Bank of India will onboard MSME suppliers and corporate buyers onto the DTX platform for seamless invoice financing
- The partnership enables real-time discounting of trade receivables, reducing payment cycles and improving cash flow for MSMEs
- KredX currently works with over 70,000 MSME suppliers and large corporations across India
How TReDS Works And Why It Matters
- TReDS is an RBI-mandated digital platform that facilitates invoice discounting for MSMEs from corporate buyers via banks and financiers
- MSMEs upload approved invoices, which are then bid on by financiers, allowing early payment at competitive rates
- The system ensures transparency, reduces credit risk, and eliminates the need for collateral
- With recent mandates requiring companies with turnover above Rs 250 crore to register on TReDS, adoption is expected to surge
Benefits For MSMEs And Corporates
- MSMEs gain faster access to working capital without waiting for long payment cycles
- Corporates benefit from improved supplier relationships and streamlined procurement processes
- Central Bank of India’s participation adds credibility and reach, especially in Tier 2 and Tier 3 cities
- KredX’s platform supports automated onboarding, digital KYC, and real-time transaction tracking
Technology And Regulatory Strength
- KredX’s DTX platform integrates AI-driven risk assessment and blockchain-based invoice authentication
- The platform complies with RBI’s guidelines on digital lending, data privacy, and transaction security
- KredX also holds an International Financial Services Centre Authority (IFSCA) licence for cross-border trade financing under its GTX platform
- The full-stack trade finance model positions KredX to serve both domestic and global markets
Strategic Implications For Central Bank Of India
- The partnership aligns with Central Bank’s digital transformation roadmap and MSME outreach strategy
- It enhances the bank’s ability to offer value-added services to corporate clients and SME borrowers
- The move supports the government’s vision of formalizing MSME credit and reducing dependency on informal lending channels
- Central Bank can now tap into KredX’s data analytics to assess borrower behavior and creditworthiness
Market Outlook And Competitive Landscape
- India’s TReDS ecosystem includes platforms operated by RXIL, M1xchange, Invoicemart, and now KredX
- With over Rs 1 lakh crore worth of invoices discounted since inception, the market is poised for exponential growth
- KredX’s entry as the fifth licensed platform adds competitive pressure and innovation to the segment
- Banks partnering with TReDS platforms are expected to gain access to high-quality MSME portfolios and reduce NPAs
Conclusion
The partnership between Central Bank of India and KredX marks a significant step toward digitizing MSME financing and strengthening India’s supply chain ecosystem. By combining KredX’s agile technology with Central Bank’s institutional reach, the collaboration promises to unlock new liquidity channels for small businesses and drive inclusive economic growth. As TReDS adoption accelerates, this alliance is set to redefine how trade receivables are financed in India.
Sources: The Hindu Business Line, Business Standard, Indian Startup News.
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