Sidbi extends validity of 'Swavalamban Crisis Responsive Fund'

Small Industries Development Bank of India (Sidbi) on Friday said it has extended the validity of 'Swavalamban Crisis Responsive Fund' (SCRF) to facilitate free onboarding of more micro, small and medium enterprises (MSMEs) on TReDS platform.

SCRF was set up in June 2020 to support onboarding of MSMEs on the Trade Receivables Discounting System (TReDS) platform and waiving their joining/registration fees.

The last date of drawdown of the fund will now be up to May 31, 2021, Sidbi said in a release.

It said the plan is to on board over 13,500 MSMEs by March 31, 2021 as against the earlier envisaged 10,000.

Receivables Exchange of India (RXIL), M1xchange and Invoicemart are the three TReDS platforms which help MSMEs gain access to working capital through invoice discounting via multiple financiers.

As on November 30, 2020, a total of 6,545 MSMEs have been given free onboarding facility on TReDS through RXIL, M1xchange and Invoicemart, the release said.

TReDS is an electronic platform where receivables of MSMEs drawn against buyers (large corporates, public sector undertakings, government departments, etc) are financed through multiple financiers at competitive rates through an auction mechanism.