RBI vide circular dated 20.01.2022 has issued regulations under the amended Factoring Regulation Act, 2011. Government of India has recently amended the Factoring Regulation Act, 2011 (“the Act”) which widens the scope of companies that can undertake factoring business. The Bank has issued the following regulations:
- Registration of Factors (Reserve Bank) Regulations, 2022 issued vide Notification No. DOR.FIN.080/CGM(JPS) – 2022 dated January 14, 2022.
- Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022
Under the provisions of the regulations mentioned above, all existing non-deposit taking NBFC-Investment and Credit Companies (NBFC-ICCs) with asset size of ₹1,000 crore & above will be permitted to undertake factoring business subject to satisfaction of certain conditions.
