The Parliament passes the Factoring Regulation (Amendment) Act, 2021 on 7th August, 2021, amending the Factoring Regulation Act, 2011.

Key changes enacted by the amendment are:

  • The amendment states that every factor shall register the particulars of every transaction of assignment of receivables in his favor with the Central Registry set-up under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
  • In cases where any trade receivables are financed through a Trade Receivables Discounting System, the particulars shall be filed with the Central Registry on behalf of the factor by the Trade Receivables Discounting System. Trade Receivables Discounting System refers to a payment system authorized by the Reserve Bank under the Payment and Settlement Systems Act, 2007 for the purpose of facilitating financing of trade receivables.
  • The Reserve has the power to make regulations and carry out the provisions of the Act.


*Tanvi Singh, Editorial Assistant has reported this brief.

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