Q73: What is the primary purpose of the Trade Receivables Discounting System (TReDS)?

To facilitate the financing of trade receivables for MSMEs

To provide a unified and interoperable toll payment solution

To enable instant, 24x7 fund transfers between bank accounts

To process bulk and repetitive payments like salaries and pensions [QR_BOX]

✅ Correct Answer: A

The Trade Receivables Discounting System (TReDS) is an institutional mechanism set up to facilitate the financing of trade receivables for MSMEs.

Its role in supporting small businesses is a policy highlight in the RBI's Payment Systems Report - June 2025.

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