RBI issues TReDS Directions, 2026
TReDS operators must apply the new Directions immediately: capital requirements are revised and MSME-seller due-diligence is removed
Change
On 23 June 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Trade Receivables Discounting System) Directions, 2026, finalising reforms to the TReDS framework including removal of the due-diligence requirement for MSME sellers and revised capital requirements for TReDS operators, effective immediately.
Why it matters
The final Directions rationalise and harmonise the TReDS regulatory framework after stakeholder feedback on the April 2026 draft. Authorised TReDS operators must apply the revised capital requirements and the removal of MSME-seller due diligence, and may frame operational and procedural guidelines within the extant regulatory framework. Failure to apply the Directions constitutes non-compliance with RBI regulatory requirements.
Implications
- — Authorised TReDS operators must align their capital position with the Directions' revised capital requirements — operating below the revised requirement is non-compliance with the RBI Directions.
- — Authorised TReDS operators must update seller-onboarding to reflect the removal of the MSME-seller due-diligence requirement while meeting all other applicable requirements — retaining superseded onboarding steps or omitting still-required checks is non-compliance with the RBI Directions.
Who is affected
- — Authorised TReDS operators
What to watch
- — 23 June 2026: the Directions apply with immediate effect.