Mumbai: Central Bank of India has partnered with C2FO Factoring Solutions Pvt. Ltd., a licensed Trade Receivables Discounting System (TReDS) operator under the brand C2Treds, to improve access to working capital for micro, small, and medium enterprises (MSMEs). The collaboration is expected to expand digital trade finance options at a time when the Reserve Bank of India (RBI) is pushing for wider adoption of digital receivables platforms.
C2FO Factoring Solutions is a wholly owned subsidiary of US-based fintech company C2FO, which has been operational globally since 2010. In March 2024, it received RBI approval to operate as a TReDS platform in India. Through C2Treds, MSMEs can digitally discount invoices and access early payments from corporate buyers, reducing delays in receivable cycles.
The partnership will allow the Central Bank of India to integrate with the C2Treds platform, providing MSMEs with faster and more transparent invoice financing. A senior official from the bank said the move aligns with RBI’s mandate to digitise trade receivables and bring more MSMEs into the formal financial ecosystem.
The development comes at a critical time for India’s MSME sector, which accounted for 30.1% of the country’s GDP in FY 2022–23 and contributed 45.79% to exports up to May 2024. With over 25 crore people employed by MSMEs, timely access to credit remains one of the sector’s persistent challenges.
By expanding the availability of TReDS-linked financing, the partnership seeks to ease MSMEs’ dependence on informal credit channels and improve cash flow management. The move underlines the increasing role of fintech collaborations in strengthening formal trade finance infrastructure for small businesses.
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