Section Text
(1) No factor shall commence or carry on the factoring business unless it
obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business
under this Act.
(2) Every factor shall make an application for registration to the Reserve Bank in such form and
manner as it may specify:
1*****
(3) Every applicant for grant of a certificate of a registration as a factor shall comply, for the purpose
of registration, with all the requirements to be fulfilled by an applicant for grant of certificate of
registration as non-banking financial company under the Reserve Bank of India Act, 1934 (2 of 1934) and
all the provisions of that Act, so far as they relate to the registration of non-banking financial companies,
shall (except those provided for under this Act) mutatis mutandis apply.
2[(4) The Reserve Bank may grant the certificate of registration in such manner as may be specified
by regulations.]
(5) Save as otherwise provided in this Act, every factor including factors not subject to requirement of
registration under section 5, shall be governed by the Reserve Bank of India Act, 1934 (2 of 1934), the rules and regulations made thereunder and the directions or guidelines issued by the Reserve Bank, from
time to time.
1.The proviso and Explanation omitted by Act 21 of 2021, s. 3 (w.e.f. 23-8-2021).
2. Subs. by s. 3, ibid., for sub-section (4) (w.e.f. 23-8-2021).