Lok Sabha passes Factoring Regulation (Amendment) Bill despite Opposition’s Protest

Lok Sabha Session

Greeva Garg–

The Lok Sabha has cleared the Factoring Regulation (Amendment) Bill, 2021, liberalizing the provisions of the Factoring Regulation Act, 2011.

The Lok Sabha passed the bill without discussion, due to opposition’s protests in the house on various issues.

The bill sought for helping micro, small and medium enterprises, by widening their scope for entities that can engage in the factoring business.

Also Read: After Lok Sabha, bill clears Rajya Sabha amidst opposition’s walkout: NCT of Delhi (Amendment) Bill

While speaking on the Bill, Finance Minister Nirmala Sitharaman informed the house that, “Though the original Act was brought to address the problems of delay in payment and liquidity faced by all enterprises, including micro, small and medium enterprises, the problems persist. Thus, the bill (based on recommendations of UK Sinha Committee) contemplates long-term measures for economic and financial sustainability of the sector.”

The bill was introduced in the Lok Sabha on September 14, 2020. After that, the bill was referred to the standing committee of Finance on September 25, 2020, and further tabled by the committee before the Lok Sabha on February 3, 2021.

Some recommendations of the committee have been accepted by the government. Accordingly, one amendment will be made to the bill.

Further, the bill will be presented before the Rajya Sabha for their consideration.

Related Post