Mumbai: In a key development aimed at empowering micro, small, and medium enterprises (MSMEs), Central Bank of India has entered into a strategic partnership with C2FO Factoring Solutions Pvt. Ltd., a licensed Trade Receivables Discounting System (TReDS) platform operating under the brand C2Treds.
The collaboration is poised to improve working capital access, boost liquidity, and promote financial inclusion among MSMEs across India.
C2FO: Global Expertise, Local Impact
C2FO Factoring Solutions Pvt. Ltd. is a wholly owned subsidiary of the US-based fintech firm C2FO, which has been operating globally since 2010. The company received Reserve Bank of India (RBI) approval to operate as a TReDS platform under the brand C2Treds on March 4, 2024.
As a TReDS operator, C2Treds facilitates digital invoice discounting, allowing MSMEs to receive early payments against their receivables from corporate buyers, thus improving their cash flows and business continuity.
Enabling Seamless Digital Financing for MSMEs
Under the partnership, Central Bank of India will offer seamless access to invoice discounting services on the C2Treds platform, enabling MSMEs to unlock liquidity quickly and affordably.
This move is in line with the RBI’s ongoing push to digitise trade finance, particularly for MSMEs, by expanding access to transparent and efficient trade receivables management solutions.
“Our partnership with C2FO Factoring Solutions is a step towards creating a more inclusive and digitally empowered financial ecosystem for MSMEs,” said a senior official from Central Bank of India.
Driving Economic Inclusion Through Fintech Collaboration
This collaboration reinforces the commitment of both organizations toward supporting the MSME sector, which is a critical engine of employment and GDP growth in India.
With enhanced access to TReDS through C2Treds, MSMEs will now be better positioned to –
- Reduce dependence on informal credit channels
- Improve working capital cycles
- Strengthen financial sustainability
- Participate in India’s formal digital economy
About MSMEs in India
MSMEs are the backbone of the Indian economy, driving employment and inclusive growth. They provide jobs to over 25 crore people and contribute significantly to India’s GDP and exports. The government supports MSMEs with initiatives like the Udyam Registration Portal for formalization and various financial schemes. Classification, revised in the FY26 budget, is based on investment and turnover, with limits increased to foster growth.
Gross Domestic Product (GDP): MSMEs accounted for 30.1% of India’s GDP in FY 2022-23.
Exports: The sector’s share in total exports reached 45.79% in 2024–25 (up to May 2024), demonstrating its growing integration into global trade.
Employment: MSMEs are the second-largest employer in India after agriculture, offering jobs to millions, particularly in semi-urban and rural areas.
Inclusive Growth: By promoting entrepreneurship and industrialization in less developed regions, MSMEs foster balanced regional development and inclusive growth.
About Central Bank of India
Central Bank of India is one of the oldest and most trusted public sector banks in the country. With a strong national presence and a deep focus on financial inclusion, the bank continues to serve millions through its extensive network of branches, ATMs, and BC points. Backed by a legacy of integrity and innovation, Central Bank of India plays a crucial role in India’s banking sector and economic development.
