Micro, Small and Medium Enterprises (MSMEs) are important contributors to the balanced growth and equitable development objectives of the Indian economy. Firms in the MSME sector are important suppliers of product and services to large corporates, but face liquidity constraints due to delayed payments of receivables by the large buyers. Efficient working capital management is crucial as well as challenging for smaller companies. In 2016, the Reserve Bank of India (RBI) rolled out the Trade Receivables Discounting System (TReDS) to facilitate the financing of trade receivables of MSME firms. Under TReDS, three entities received permission from RBI to set online trade receivables exchange platforms for MSME sellers, buyers and financiers. These exchanges have started operations in 2017, but... globally, the experience of such online platforms before them has not been very encouraging. This review paper analyses the context for setting up such exchanges in India, their working and potential and the future prospects for such platforms in India.