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The Factoring Regulation (Amendment) Bill
August 2 , 2021
1013 days
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- The Bill that seeks to open up factoring business to non-bank lenders was passed in the parliament.
- The Bill will provide relief to micro, small and medium enterprises and help them, ensuring a smoother capital cycle and healthier cash flow.
- The current law on factoring business was enacted in 2011.
- It gave the Reserve Bank of India authority to allow non-bank finance companies to remain in factoring business only if it was their principal business.
- That is, more than half of assets were to be deployed and income earned from factoring business.
- The Bill removes this threshold.
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