{"id":121536,"date":"2021-07-27T18:40:22","date_gmt":"2021-07-27T13:10:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=121536"},"modified":"2022-09-20T16:15:24","modified_gmt":"2022-09-20T10:45:24","slug":"factoring-regulation-bill-gets-the-go-ahead","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/factoring-regulation-bill-gets-the-go-ahead\/","title":{"rendered":"Factoring Regulation (Amendment) Bill,2020"},"content":{"rendered":"<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.livemint.com\/Home\/MShareArticle?OrgId=277b7c7698d&amp;imageview=0\"><strong>Livemint<\/strong><\/a><\/p>\n<p><strong>Introduced<\/strong>: Lok Sabha (14th Sept 2020)<\/p>\n<p><strong>Present status<\/strong>: Passed in both Lok Sabha and Rajya Sabha. Received the assent of the President on the 7th August 2021.<\/p>\n<h5><strong>About Factoring Regulation (Amendment) Bill,2020:<\/strong><\/h5>\n<ul>\n<li><strong>The Factoring Regulation (Amendment) Bill, 2020 <\/strong>amends the Factoring Regulation Act, 2011 to widen the scope of entities that can engage in factoring business.<\/li>\n<\/ul>\n<p><strong>Note: Factoring <\/strong>is a business where an entity(factor) acquires the receivables of a company at a discount and realizes it from entities that owe the money. This helps the company to monetize its receivables quickly and tackle cash-flow problems.<\/p>\n<h5><strong>Key Provisions of the Bill:<\/strong><\/h5>\n<ol>\n<li><strong>Participation of NBFCs:1. <\/strong>\n<ol>\n<li><strong>The bill seeks to <\/strong>liberalize the participation of non-banking financial companies (NBFCs) in the factoring business.<\/li>\n<li><strong>It also removes the requirement <\/strong>of an entity, in the factoring business, to report every transaction within 30 days. The bill proposes that such finer details will be specified in regulations.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h5><strong>2. Removes RBI Authorization:<\/strong><\/h5>\n<ol>\n<li><strong>The existing law <\/strong>on factoring business enacted in 2011 allows the RBI authorization for NBFCs to remain in factoring business only if it was their principal business: with more than half of their assets deployed and income earned from factoring business.<\/li>\n<li><strong>The amendment bill removes this threshold. <\/strong>This is expected to open up the opportunity in this business to more non-bank lenders at a time small businesses are facing the financial stress of the second wave of the Covid-19 pandemic.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Source: Livemint Introduced: Lok Sabha (14th Sept 2020) Present status: Passed in both Lok Sabha and Rajya Sabha. Received the assent of the President on the 7th August 2021. About Factoring Regulation (Amendment) Bill,2020: The Factoring Regulation (Amendment) Bill, 2020 amends the Factoring Regulation Act, 2011 to widen the scope of entities that can engage&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/factoring-regulation-bill-gets-the-go-ahead\/\">Continue reading <span class=\"screen-reader-text\">Factoring Regulation (Amendment) Bill,2020<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[8613],"class_list":["post-121536","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-factoring-regulation-amendment-bill","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700654793},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/121536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=121536"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/121536\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=121536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=121536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=121536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}