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Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform:
  1. Only MSMEs can participate as sellers in TReDS.
  2. Only Government Departments and PSUs can participate as buyers in TReDS.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements regarding the Trade Receivables Disc...
Trade Receivables Discounting System (TReDS) Platform: Correct Statement

Introduction:
Trade Receivables Discounting System (TReDS) is an online electronic institutional mechanism. It facilitates the financing of trade receivables of micro, small, and medium enterprises (MSMEs) from corporate buyers through multiple financiers.

Statement Analysis:
1. Only MSMEs can participate as sellers in TReDS.
- This statement is correct. The TReDS platform is primarily designed to provide MSMEs with quick and easy access to finance. Therefore, only MSMEs are eligible to register as sellers on the platform.
2. Only Government Departments and PSUs can participate as buyers in TReDS.
- This statement is incorrect. While Government Departments and PSUs are encouraged to participate in TReDS, they are not the only eligible buyers on the platform. Any corporate entity registered in India as a buyer can participate in TReDS to support MSMEs.

Conclusion:
In conclusion, statement 1 is correct, and statement 2 is incorrect. Therefore, the correct answer is option 'A' - 1 only. TReDS is an essential initiative for the financial inclusion of MSMEs in India. It helps MSMEs to receive prompt payment and access to working capital, which is crucial for their growth and success.
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Consider the following statements regarding the Trade Receivables Disc...
The Reserve Bank on Wednesday expanded the trade receivables discounting system (TReDS) by permitting insurance companies to function as participants.
About Trade Receivables Discounting System (TReDS) platform:
  • It is an electronic platform for facilitating the financing/discounting of trade receivables of Micro, Small, and Medium Enterprises (MSMEs) through multiple financiers. 
  • These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
  • Purpose: To allow MSME sellers to discount invoices raised against major corporations, which helps them manage their working capital demands. The platform enables MSMEs to receive payments more quickly.
  • Participants:
  • Sellers, buyers, and financiers are the participants on a TReDS platform.
  • Only MSMEs can participate as sellers in TReDS.
  • Corporates, Government Departments, PSUs, and any other entity can participate as buyers in TReDS.
  • Banks, NBFC - Factors, and other financial institutions, as permitted by the RBI, can participate as financiers in TReDS.
  • RBI has not made it compulsory for any buyer, seller, or financier to participate in TReDS. 
  • The Government has made it compulsory for certain segments of companies to mandatorily register as buyers on the TReDS platform(s). The government directive, however, does not make it compulsory for these entities to perform transactions in TReDS.
  • How does TReDS work?
  • Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices/bills of exchange.
  • Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
  • Bidding by financiers;
  • Selection of best bid by the seller or the buyer, as the case may be;
  • Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing/discounting;
  • Payment by the buyer to the financier on the due date.
What are Trade receivables?
  • Trade receivables are defined as the amount owed to a business by its customers following the sale of goods or services on credit. 
Hence only statement 1 is correct.
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In the 2006 Common Wealth games, there was participation from five different countries - USA, China, UK, Australia and Japan. From each of these five countries there were athletes participating in one of the five following events: shot put, javelin, high jump, long jump and marathon. Each participant was allowed to participate in exactly one of the five events.Further it is known that there were at least two participants and at most ten participants from each country and the total number of participants from all the five countries put together was a perfect square.The following information is also available:I. The number of participants in javelin was exactly half the number of participants in each of the other events.II. USA sent an equal number of participants in shot put, high jump and long jump.III. The maximum number of participants sent by Japan is for the long jump event and each country sent at least one participant for the long jump and shot put events.IV. The number of participants from China was two more than that from USA, which in turn was one more than that from UK, which in turn was one more than that from Australia which in turn was one more than that from Japan.V. Except Japan, all the other countries sent at least one participant for the javelin event while Japan sent at least one participant in each of the remaining events.VI. The number of participants sent by China for each of the events was different and there were no participants from China for the high jump event.VII. The number of participants in the marathon event sent by all the other countries other than China is equal.Q. How many countries did not send even a single participant in any one event?

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Consider the following statements regarding the Trade Receivables Discounting System (TReDS) platform: Only MSMEscan participate assellersin TReDS. Only Government Departments and PSUs canparticipate as buyersin TReDS.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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