The Reserve Bank of India on Tuesday relaxed the onboarding rules for small businesses using trade receivables discounting system (TReDS) platform. Under the new guidelines, the central bank also plans to streamline capital requirements for authorised entities with those for other non-bank payment system operators (PSOs), and allow financiers to obtain credit guarantee cover for exposures taken on TReDS. TReDS is an online platform that enables small businesses to sell their invoices or trade receivables to banks and financial institutions to access working capital. The RBI said that the platform must implement necessary validation checks to confirm the seller is an MSME, and ensure funds owed to the seller are credited only to the seller’s bank account.