Receivables Exchange of India Ltd (RXIL) initiated a Trade Credit Insurance (TCI) backed transaction with Tata AIG as the insurer and ICICI Bank and Yes Bank as the financiers in a sandbox environment.
“This is the first time a TReDS platform has tested the efficacy of TCI backed transaction, improving the ability of financiers in assigning credit limits to corporates. TCI, once implemented post regulatory approvals, will enable financiers to discount the invoices drawn on lower-rated corporate buyers, by their MSME sellers and will improve the liquidity from lenders,” RXIL said in a statement on Thursday.
The adoption of Trade Credit Insurance on TReDS will pave the way for a completely digital bite-sized credit insurance model, it further said.