The Reserve Bank of India (“RBI”), vide its notification dated January 14, 2022, has issued the Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022 (“Regulations”) pertaining to the manner of filing of particulars of transactions with the central registry (set up under section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) (“Central Registry”) by a Trade Receivable Discounting System (“TReDS”) on behalf of Factors (as defined under the Factoring Regulation Act, 2011).

Brief overview of the manner of filing the particulars with the Central Registry, the form in which the filing has to be done and payment of necessary fee, as introduced by the Regulations are detailed below:

1. Where any trade receivables are financed through a TReDS, the concerned TReDS on behalf of the Factor will have to, within a period of 10 (ten) days, from the date of such assignment or satisfaction thereof, as the case may be, file with the Central Registry the particulars of:
2. assignment of receivables in favour of a Factor in Form I (format as specified under the Regulations), which will be authenticated by the authorized person using a valid electronic signature.
3. satisfaction of any assignment of receivables on full realization of the receivables in Form II (format as specified under the Regulations), which will be authenticated by the authorized person using a valid electronic signature.
4. If the particulars referred in paragraph (a) above, are not filed within the period specified therein, the Central Registrar may, on being satisfied on an application made in this behalf stating the reasons for the delay, allow the said particulars to be filed within such additional time not exceeding 10 (ten) days as he may specify, upon payment of the fee as prescribed by the Government of India (“GoI”) in Registration of Assignment of Receivables Rules, 2012, as amended from time to time (the “Assignment Rules”).
5. Every Form for registration of any transaction relating to assignment of receivables or satisfaction of receivables on realisation will have to be accompanied by the fee, as prescribed by GoI in the Assignment Rules, to be paid to the Central Registrar in the manner as may be specified by the Central Registrar from time to time.

The Regulations have come into effect from the date of their publication in the official gazette i.e. January 17, 2022.

Please find a copy of the Regulations here and a copy of the gazette notification here.

This update has been contributed by Nidhi Arya (Partner) and Swaraj Narula (Senior Associate).

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