M1xchange, India’s first and leading TReDS platform, in partnership with YES BANK and RBL Bank, announced today that it has started testing of ‘Small-Small Factoring’ product under the Reserve Bank of India’s (RBI’s) third cohort of regulatory sandbox.
This product is intended to enable early liquidity to Micro, Small & Medium Enterprises (MSMEs) buyers and sellers and offers a world class customer experience to MSMEs supported by a convenient and end-to-end digital process. After successful testing under sandbox, a full scale roll out of this product is expected to offer a highly effective and efficient solution for over USD 750 Billion credit gap for MSMEs in India.
This product is one of the eight propositions that have been approved after a detailed evaluation of 22 applications by the RBI.
The testing under sandbox is expected to be complete by September 2022.