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.

Here is the breakdown of why the statements are evaluated this way:Statement 1 is incorrect: M1xchange does not provide traditional, collateral-based loans. Instead, it offers collateral-free and without-recourse financing. The financing is purely based on the credit profile of the corporate buyer who accepted the invoice, meaning small business owners don't have to pledge land, property, or machinery. Statement 2 is correct: This is M1xchange’s core objective. It functions as an online marketplace under the RBI's TReDS (Trade Receivables Discounting System) framework, allowing MSMEs to auction and discount their unpaid trade invoices and Bills of Exchange to banks and NBFCs for quick, immediate cash. Statement 3 is incorrect: M1xchange is a digital trade exchange/marketplace, not a credit rating agency (like CRISIL, ICRA, or SMERA). While participating banks on the platform evaluate credit risk before bidding on an invoice, M1xchange itself does not issue credit ratings.