Quick Summary
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 Act permits Trade Receivables Discounting System (TReDS) to file the particulars of assignment of receivables transactions with the C
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The amended Act widens the scope of companies that can undertake factoring business and empowers the Reserve Bank of India to make regulations for registration and filing of receivables transactions.
The RBI has issued the Registration of Factors (Reserve Bank) Regulations, 2022 and the Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022.
Existing non-deposit taking NBFC-Investment and Credit Companies (NBFC-ICCs) with an asset size of ₹1,000 crore and above are permitted, subject to certain conditions.
The number of eligible NBFCs to undertake factoring business is expected to increase significantly from 7 to 182.
TReDS can file the particulars of assignment of receivables transactions with the Central Registry on behalf of the Factors, and must do so within 10 days for trade receivables financed through TReDS.
Yes, other NBFC-ICCs can undertake factoring business by registering as NBFC-Factor with the Reserve Bank.
CAclubindia
