RBI Proposes TReDS Overhaul in Draft 2026 Directions

Introduces Credit Guarantee, Mandatory CERSAI Registration among other changes.

RBI has released draft Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026, proposing a comprehensive overhaul of the existing TReDS framework. These draft directions, if notfied, will replace all existing directions and circulars on TReDs.

Below are the 5  key changes proposed:

🔹Introduction of credit guarantee:

Financiers are now permitted to avail credit guarantee cover (via NCGTC) for exposures on TReDS. This is a significant step towards de-risking receivables financing and encouraging wider participation by lenders. Notably, RBI had already expanded the ecosystem in 2023 by permitting insurers as participants to provide credit insurance cover for such exposures.

🔹  Simplified onboarding for MSMEs:

In line with the Governor’s statement, the draft seeks to streamline MSME onboarding by removing the earlier requirement on due diligence of the MSME prior to onboarding.

🔹 Mandatory registration of assignment with CERSAI:

The draft mandates (earlier recommended) registration of assignment of receivables with CERSAI, strengthening legal enforceability and improving transparency of receivables financing transactions.

🔹Annual, monthly and event-based reporting requirements:

Annually (by 30 Sept): submit audited net-worth certificate and IS/Cyber Security Audit report.
Monthly (by 7th): submit TReDS statistics.
Event-based: report any change in Board along with director declaration/undertaking.

🔹Minimum net worth of Rs. 25 Crores for entities setting up a TReDS

The draft requires TReDS entities to maintain a minimum net worth of ₹25 crore (replacing the earlier paid-up capital requirement), duly certified by the statutory auditor. Existing players must meet this requirement by 31 March 2027.

Link to the draft directions: https://lnkd.in/gkuHNJW9