The Kerala Financial Corporation (KFC) on Friday launched the Kerala MSME Bill Discounting Platform, a mechanism for ensuring liquidity to micro, small, and medium enterprises (MSMEs) by discounting their outstanding bills.
KFC said it has partnered with Receivables Exchange of India Ltd (RXIL), a Reserve Bank of India-approved company, to start the platform. RXIL is a venture of the Small Industries Development Bank of India (SIDBI) and the National Stock Exchange of India (NSE).
Finance Minister K. N. Balagopal inaugurated the platform at a function held here. According to KFC, bills accepted by government departments, public sector units and corporations would be discounted under the scheme.
KFC will pay the eligible amount to the supplier within 48 hours. The departments will get 180 days to repay the money to KFC.
“The scheme benefits government departments/ public sector undertakings (PSUs) in many ways. The liquidity position of the department/ PSU improves as the repayment liability is eased. The department/ PSU will be able to do purchases or execute works at a competitive price as the supplier or contractor can be assured of immediate payments,” KFC said.
This will also encourage more established suppliers to participate in the tendering process as they are assured of payment on time.
Transport Minister Antony Raju presided. V. K. Prasanth, MLA, district panchayat president D. Suresh Kumar, KFC chairman and managing director Sanjay Kaul, RXIL chief operating officer Kailashkumar Varodia, and KFC executive director Premnath Ravindranath were present.
