Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?1.M1xchange provides collateral based loans to MSMEs.2.M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.3.M1xchange functions as a credit rating agency for MSMEs. Select the answer using the code given below:

1. A

   1, 2 and 3

   1, 2 and 3: This option claims all three statements are correct, but M1xchange does not provide collateral-based loans or act as a credit rating agency.

2. B

   2 only

   2 only. M1xchange is an RBI-approved Trade Receivables Discounting System (TReDS) platform that facilitates the discounting of invoices and Bills of Exchange for MSMEs to improve their cash flow without adding formal debt.

3. C

   2 and 3 only

   2 and 3 only: This option incorrectly includes statement 3; M1xchange is a TReDS platform provider and electronic marketplace, not a statutory credit rating agency.

4. D

   1 only

   1 only: This option claims M1xchange provides collateral-based loans, which is incorrect as it operates purely on receivables financing rather than direct lending or collateral loans. Summary. Official key is (b). M1xchange operates strictly as a TReDS platform focusing on invoice and bill discounting for MSMEs, rendering statements 1 and 3 incorrect.

Summary. Official key is (b). M1xchange operates strictly as a TReDS platform focusing on invoice and bill discounting for MSMEs, rendering statements 1 and 3 incorrect.