BANKING AFFAIRS

Detailed explanation-1: -Press Releases. Government of India has recently amended the Factoring Regulation Act, 2011 (“the Act”) which widens the scope of companies that can undertake factoring business.

Detailed explanation-2: -The Bill seeks to amend the Factoring Regulation Act, 2011 to widen the scope of entities which can engage in factoring business.

Detailed explanation-3: -The Bill provides for the regulation of the factoring business by the Reserve Bank of India. It empowers the Reserve Bank of India to issue directions, call for information from the factor, and prohibit financial institutions from undertaking the factoring business if they fail to comply with its directions.

Detailed explanation-4: -(5) Save as otherwise provided in this Act, every factor including factors not subject to requirement of registration under section 5, shall be governed by the Reserve Bank of India Act, 1934, the rules and regulations made thereunder and the directions or guidelines 2 of 1934.