Rajya Sabha passes Factoring Regulation Bill to help MSME sector
Tribune News Service
New Delhi, July 29
The Factoring Regulation (Amendment) Bill, 2021, is slated to become an Act with the Rajya Sabha approving it today amid din. The Bill was earlier 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.
Finance Minister Nirmala Sitharaman said the Bill would benefit the micro, small and medium enterprises of the country.
Sitharaman said MSMEs were facing difficulty due to delay in receivables and this Bill would help in ensuring smoother working capital cycle and healthier cash flow.
She said MSMEs would get the easier liquidity which would help in their operation. Despite continuous sloganeering by Trinamool Congress MPs demanding discussion on the Pegasus snooping scandal, the House had a brief discussion on the Bill.
KR Suresh Reddy of TRS, M Thambidurai of AIADMK and Shiv Pratap Shukla of BJP spoke on it. The Coconut Development Board (Amendment) Bill, 2021, was also introduced in the House by Agriculture Minister Narendra Singh Tomar.
LS passes 2 Bills
The Lok Sabha on Thursday passed The Airports Economic Regulatory Authority of India Bill and The Inland Vessels Bill amid din when the House reassembled at 2 pm after two adjournments.
