Which Bill was passed by the Parliament, in July 2021, to help in the availability of working capital for the micro, small and medium enterprises sector?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. The Factoring Regulation (Amendment) Bill, 2021.
- In July 2021, the Parliament passed the Factoring Regulation (Amendment) Bill, 2021, to enhance the availability of working capital for the Micro, Small, and Medium Enterprises (MSME) sector.
- This bill amended the Factoring Regulation Act, 2011, allowing more non-banking financial companies (NBFC) to participate in the factoring business.
- Factoring involves selling receivables to a third party for immediate funds.
- By broadening access to factoring services, the bill aimed to improve liquidity and address delayed payments, a key challenge for MSMES.