New NBFCs asked to offer factoring services. According to the General Manager of Small Industries Development Bank of India (SIDBI), Mr Mr K.I. Mani, new Non-Banking Finance Companies (NBFCs) should register themselves with the Reserve Bank of India (RBI) to offer factoring activities.
Speaking at a seminar on factoring, its potential and opportunity, in Hyderabad on Friday, Mr Mani said the Union Government had special measures to enact a separate Factoring Act.
“This is likely to create a favorable legal environment in the economy for providing factoring services and is expected to benefit micro, small and medium enterprises,” he added.