The Parliament on Tuesday passed a bill to regulate the factoring business in order to help micro, small and medium enterpries (MSMEs) in dealing with their liquidity problems.
The Regulation of Factors (Assignment of Receivables) Bill 2011 was passed by the Upper House. Earlier the Bill was passed by the Lok Sabha.
“The Bill will help the MSME units to lessen the payment problem. Factors will be regulated by the Reserve Bank of India and the Bill is applicable to all types of industry whether it is small, medium or big”, said Minister of State for Finance Namo Narain Meena.