December 21, 2011 8:20 PM

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LS approves Regulation of Factor bill to help MSME sector

A Bill aimed at increasing the credit flow in Micro, Small and Medium Enterprises (MSMEs) was passed by the Lok Sabha on Wednesday.The Bill provides for regulating assignment of receivables by making provision for registration and rights and obligation of parties to contract for assignment of receivables. Replying to discussion on the Regulation of Factor (assignment of receivable) Bill, 2011, the Minister of State for Finance, Namo Narayan Meena said the legislation will also help generating more employment while addressing the issues of resource constraint to Micro, Small and Medium Enterprises.He said, all stakeholders including the department of MSME and RBI have been consulted on this issue in line with the Government making the MSME a priority sector.

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