Prelims 2026 · Economy · Question 93
Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct ?<br/><br/>1. M1xchange provides collateral based loans to MSMEs.<br/>2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.<br/>3. M1xchange functions as a credit rating agency for MSMEs.<br/><br/>Select the answer using the code given below :<br/>
Answer
2 only
1 is incorrect: M1xchange/TReDS is not mainly a collateral-based MSME loan platform; TReDS financing is invoice/receivables based and is described as not requiring collateral. 2 is correct: RBI’s TReDS framework explicitly covers discounting of invoices and bills of exchange, and M1xchange is a TReDS platform. 3 is incorrect: M1xchange is not a credit rating agency. Therefore, only statement 2 is correct.