This is aimed to promote ease of doing business for MSMEs and to encourage their greater participation on TReDS
FinTech BizNews Service
Mumbai, April 8, 2026: The RBI Governor Shri Sanjay Malhotra made a statement on Developmental and Regulatory Policies, on April 08, 2026. The Monetary Policy Committee (MPC) held its meeting from April 6 to 8, 2026, under the chairmanship of Shri Sanjay Malhotra.
This Statement sets out various developmental and regulatory policy measures relating to (i) Regulations; (ii) Supervision; (iii) Payment Systems; and (iv) Financial Markets:
Payment Systems
Simplifying the onboarding process of MSMEs in Trade Receivables Discounting System (TReDS) With a view to facilitating timely access to working capital for MSMEs, guidelines for Trade Receivables Discounting System (TReDS) were issued in 2014 and subsequently updated in 2018. The scope of TReDS was further expanded in 2023 with the inclusion of insurance companies as the fourth participant. In order to promote ease of doing business for MSMEs and to encourage their greater participation on TReDS, it is proposed to dispense with the requirement of due diligence of MSMEs while onboarding on TReDS platforms. A comprehensive review of other extant instructions has also been undertaken, and draft directions will be issued shortly for public consultation.
Financial Markets
Development of Term Money Market An active-term money market, apart from providing an alternative funding avenue to the market participants, also helps in enhancing monetary policy transmission by creating a link between the overnight money market and longer-term interest rates. At present, only banks and standalone primary dealers are eligible to participate in the term money market, with certain prudential limits. With a view to further enhance the depth of participation and liquidity in the term money market segment, it has been decided to (a) expand the participant base in the term money market segment to include non-bank participants viz., AIFIs, NBFCs, including housing finance companies, companies, etc.; and (b) enhance the borrowing limit in the term money market for standalone primary dealers. The revised directions are being issued separately.
