Supreme Court Expresses Disappointment Over Inadequate Implementation of RPwD Act, 2016  ||  24,000 Teaching and Non-Teaching Jobs Invalidated by Calcutta High Court  ||  24,000 Teaching and Non-Teaching Jobs Invalidated by Calcutta High Court  ||  Del. HC: For Purposes of Article 19(6) of COI National Council for Teacher Education is ‘State’  ||  Karnataka High Court: Smoking Hookah as Addictive and Harmful as Smoking Cigarettes  ||  All. HC: Interest Can’t be Awarded by Labour Court In Proc. for Money Recovery from Empl. u/s 33C(2)  ||  All. HC: Rs. 5 Lakh Cost Imposed on CWC for Sending Minor Living With Mother to Children’s Home  ||  Ker. HC Issues Guidelines for DNA Testing of Children of Rape Victims Who Are Given in Adoption  ||  SC: Fourteen-Year-Old Rape Survivor Allowed to Terminate Twenty-Eight-Week Pregnancy  ||  SC: Government of Himachal Pradesh Directed to Review its Policies on Child Care Leaves    

RBI issues regulations under the amended Factoring Regulation Act, 2011 - (20 Jan 2022)

Banking

In the recent past, Central Government has amended the Factoring Regulation Act, 2011 widening the scope of companies that can undertake factoring business. The Act allows Trade Receivables Discounting System (TReDS) to file the particulars of assignment of receivables transactions with the Central Registry on behalf of the Factors for operational efficiency. Further, the Act empowers the Reserve Bank of India to make regulations prescribing the manner of grant of certificate of registration and for prescribing the manner of filing of assignment of receivables transactions by TReDS on behalf of the Factors.

The Factoring Regulation Act, 2011 was enacted for regulating the receivables to factors, making provision for registration for doing factoring business, and to determine the rights of the parties in a factoring contract. Now, in exercise of the powers conferred under the Act, the Bank has issued Registration of Factors (Reserve Bank) Regulations, 2022 and Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022.

Under the provisions of the regulations, all existing non-deposit taking NBFC-Investment and Credit Companies (NBFC-ICCs) with asset size of Rs. 1,000 crore and above will be permitted to undertake factoring business subject to satisfaction of certain conditions. This will increase the number of NBFCs eligible to undertake factoring business significantly from 7 to 182. Other NBFC-ICCs can also undertake factoring business by registering as NBFC-Factor. Eligible companies may apply to the Reserve Bank for seeking registration under the Act. Further, in respect of trade receivables financed through a Trade Receivables Discounting System (TReDS), the particulars of assignment of receivables shall be filed with the Central Registry on behalf of the Factors by the TReDS concerned within 10 days.

Tags : REGULATION   FACTORING   ISSUANCE  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved