Under the RBI's TReDS Directions, 2026, what is the platform transaction in which a financier assigns a factoring unit it has already financed to another financier?
Question and options
Under the RBI's TReDS Directions, 2026, what is the platform transaction in which a financier assigns a factoring unit it has already financed to another financier?
Forfaiting
Rediscounting
Reverse factoring
Invoice refinancing
Answer and explanation
Correct answer: B - Rediscounting
Clause 19 of the RBI's TReDS Directions, 2026 permits further discounting or re-discounting of discounted factoring units by financiers, which allows a secondary market in these receivables. Reverse factoring refers instead to the buyer uploading the factoring unit, and forfaiting is the without-recourse purchase of export receivables.