Central Bank of India, one of the country’s oldest and most trusted public sector banks, has announced the launch of a groundbreaking TReDS Insurance Policy, aimed at enhancing the security and confidence of MSMEs and financiers operating on Trade Receivables Discounting System (TReDS) platforms. This innovative insurance solution has been developed in collaboration with Tata AIG General Insurance Company Limited, a leading name in the Indian insurance sector known for its robust risk management and customer-centric approach. With this initiative, the insurer is formally introduced as the fourth key stakeholder in the TReDS ecosystem — alongside MSMEs, buyers, and financiers. The newly launched policy is designed to mitigate credit risk associated with invoice financing under TReDS, offering coverage against default by buyers, including corporate and government undertakings. It marks a significant step toward deepening financial inclusion, strengthening supply chain finance, and boosting liquidity for MSMEs. Speaking on the occasion, Shri Pravin Kini (General Manager) and Shri Sohail Ahmad, (General Manager), Central Bank of India, stated, \"This strategic initiative reflects our commitment to empowering MSMEs and strengthening the digital credit ecosystem. By partnering with Tata AIG, we are ensuring that our stakeholders have access to a safety net that promotes trust and accelerates growth.\" Mr. Deepak Kumar, Sr. EVP and Head reinsurance, Credit Insurance, Aviation Insurance, Tata AIG General Insurance, added, \"We are proud to collaborate with Central Bank of India on this forward-looking solution. The TReDS Insurance Policy is a testament to our shared vision of supporting India’s MSME sector through innovation and resilience.\"

Central Bank Partners with Tata AIG for TReDS Insurance

The Central Bank of India has launched a new insurance policy in collaboration with Tata AIG General Insurance Company Limited to mitigate credit risk for MSMEs and financiers using the Trade Receivables Discounting System (TReDS). The policy provides coverage against buyer defaults, including corporate and government entities, and strengthens the digital credit ecosystem by enhancing trust and liquidity for small and medium enterprises.