The Ministry of Finance on 11th October 2021 has published the Registration of Assignment of Receivables (Amendment) Rules, 2021 to further amend the Registration of Assignment of Receivables Rules, 2012.
Through this amendment, rule 3 which deals with Registration of transactions of assignment of receivables has been substituted as follows:
Every factor other than a factor carrying on factoring business for financing against assignment of trade receivables through a Trade Receivables Discounting System shall, within a period of ten days from the date of such assignment or satisfaction thereof, as the case may be, file with the Central Registry the particulars of assignment, receivables in his favor in Form I, which shall be authenticated using a valid electronic signature by a person specified in the said Form for the purpose and satisfaction of any assignment of receivables on full realisation of the receivables in Form II, which shall be authenticated using a valid electronic signature by a person specified in the said Form for the purpose.
Further, if the above particulars are not filed within the period specified therein, the Central Registrar may, on being satisfied on an application made on this behalf stating the reasons for the delay, allow the said particulars to be filed within such additional time not exceeding ten days as he may specify, upon payment of fee as specified in rule 6.
As per rule 6, any application for condonation of delay up to 10 days, shall pay 10 times the basic fee as a penalty.
