Parliament has passed the Factoring Regulation (Amendment) Bill, 2021 with the Rajya Sabha approving it today amid din. The bill has already been passed by the Lok Sabha.
The bill seeks to amend the Factoring Regulation Act, 2011 to widen the scope of entities which can engage in factoring business. Factoring business is a business where an entity acquires the receivables of another entity for an amount.
Factor can be a bank, a registered non-banking financial company or any company registered under the Companies Act.
Speaking on the bill, Finance Minister Nirmala Sitharaman said, it will benefit the Micro, Small and Medium Enterprises of the country.
She said, MSMEs are facing difficulty due to delay in receivables and this bill will help in ensuring smoother working capital cycle and healthier cash flow.
She said, MSMEs will get the easier liquidity which will help in their operation. The house had a brief discussion on the bill. K.R. Suresh Reddy of TRS, M. Thambidurai of AIADMK and Shiv Pratap Shukla of BJP spoke on it.
Besides, the Coconut Development Board (Amendment) Bill, 2021 was also introduced in the house. Agriculture Minister Narendra Singh Tomar introduced the bill.