RBI Grade B Officer (General / DEPR / DSIM) 2025 · Question 248 of 259

- Read the passage given below and answer the following questions: Micro, Small and Medium Enterprises (MSMEs) play a crucial role in India’s economic development by contributing significantly to employment, exports, and industrial output. Despite their importance, MSMEs often face challenges related to delayed payments and limited access to formal credit. To address these issues, digital platforms have been introduced to improve liquidity and working capital availability. One such mechanism enables MSMEs to discount their trade receivables online in a transparent manner. These platforms connect MSME sellers, buyers, and financiers to facilitate invoice-based financing. The system reduces dependence on collateral-based lending and improves cash flow for small businesses. It also promotes financial inclusion and strengthens supply-chain financing. The platform operates under a regulated framework to ensure safety, transparency, and efficiency. Participation is voluntary but encouraged for faster realization of dues. Such initiatives support the overall resilience of the MSME sector. (This is a recreated passage and not the exact one asked in the exam) With reference to the Trade Receivables Discounting System (TReDS), consider the following statements: 1. TReDS enables MSMEs to obtain liquidity by facilitating the discounting of trade receivables arising from sales to corporate and government buyers through an electronic platform. 2. The platform addresses the issue of delayed payments to MSMEs by allowing multiple financiers to bid on invoices accepted by buyers. 3. TReDS entities are recognised as market infrastructure institutions. Which of the statements given above is/are correct?

Financial Markets

1. AA. Only 1
2. BB. Only 1 and 2Correct
3. CC. Only 2 and 3
4. DD. Only 1 and 3
5. EE. 1, 2 and 3