The Directions replaces the earlier guidelines with a to rationalise and harmonise the regulatory framework governing TReDS platforms. It streamline capital requirements for authorised entities by aligning them with other non-bank payment system operators, simplify the onboarding process for MSME sellers, and permit financiers to obtain credit guarantee cover for exposures undertaken through TReDS. It prescribe eligibility, authorisation, minimum net-worth requirements, participant categories, operational standards, customer due diligence, reporting obligations, and settlement mechanisms. Factoring transactions remain without recourse to MSME sellers, while buyers assume an unconditional payment obligation upon acceptance of invoices.