HDFC Bank inks an agreement with TReDs platform M1xchange

M1xchange (TReDs platform), a marketplace for discounting trade receivables, and HDFC Bank have partnered to provide small businesses’ access to financing at competitive interest rates. To debut on the Trade Receivables Discounting System (TReDs) platform, HDFC Bank has joined forces with M1xchange, a project of Mynd Solutions Pvt Ltd. This action is anticipated to provide corporate buyers and MSMEs with high liquidity at competitive interest rates.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

HDFC Bank, M1xchange Agreement: Key Points:

• The Micro, Small, and Medium-Sized Enterprises (MSMEs) can auction their trade receivables online through the TReDS (M1xchange) system, which is governed by the RBI, and borrow money from the financial institution offering the lowest interest rate.
• The partnership between HDFC Bank and M1xchange represents yet another important advance in the financing of MSME and micro category firms.
• Shorter turn-around times and lower administrative expenses will enable HDFC Bank to book more new-to-bank (NTB) corporate buyer partnerships, according to him.
• This agreement is anticipated to increase TReDS (M1xchange) adoption among more corporate customers and MSMEs, as well as bring in more liquidity.

HDFC Bank, M1xchange Agreement: Important Takeaways:

• Senior Executive Vice President, HDFC Bank: Vijay Mulbagal
• MD & CEO, M1xchnage: Sundeep Mohindru

Find More Banking News Here