The Karnataka High Court has dismissed a petition filed by a not for profit company named India Awake for Transparency , challenging an order of the magistrate court dismissing its private.
RBI weighs trade credit insurance for financiers on TReDS
January 09, 2021
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The Reserve Bank of India is weighing the possibility of allowing financiers on the Trade Receivables Discounting System (TReDS) to take trade credit insurance (TCI).
This insurance cover can protect financiers Banks, Non-Banking Finance Companies- Factors, and other financial institutions on TReDS platform against the risk of default when they finance/discount trade receivables of Micro, Small and Medium Enterprises (MSMEs).
TCI, if allowed, can help financiers on TReDs to minimise bad debts and reduce provisions, thereby supporting their bottomline.
The current regulations do not allow financiers to take TCI as the expectation is that their financing activity should be solely based on their credit appraisal and not on insurance.
Read more about Paisalo Digital spurts after SBI Life acquires stake on Business Standard. Paisalo Digital surged 18.68% to Rs 618.70 after SBI Life Insurance Company bought 8.98% stake in the company via bulk deal on Thursday.