The Ministry of Finance has notified Registration of Assignment of Receivables (Amendment) Rules, 2021 vide notification dated October 11, 2021. It amends the Registration of Assignment of Receivables Rules, 2012 in the following manner:
Rule 3 of the Registration of Assignment of Receivables Rules, 2012, dealing with registration of transactions of assignment of receivables shall be substituted as: Every factor other than a factor carrying on factoring business for financing against assignment of trade receivables through a Trade Receivables Discounting System shall, within a period of ten days file with the Central Registry the particulars of—
- assignment of receivables in his favour in Form I, which shall be authenticated using a valid electronic signature by a person specified in the said Form for the purpose;
- satisfaction of any assignment of receivables on full realisation of the receivables in Form II, which shall be authenticated using a valid electronic signature by a person specified in the said Form for the purpose.
If the particulars are not filed within 10 days, the Central Registrar may condone the delay and allow the said particulars to be filed within such additional time not exceeding ten days as he may specify, upon payment of fee as specified in rule 6.”;
As per Rule 6, any application for condonation of delay up to 10 days, shall pay 10 times the basic fee as a penalty.
*Tanvi Singh, Editorial Assistant has reported this brief.