Penalties for non-compliance of direction of Reserve Bank
Section 22 of the Factoring Regulation Act, 2011 deals with penalties for non-compliance of direction of Reserve Bank. compliance of direction by Reserve Bank.—(1) If any factor fails to comply with any direction issued by the Reserve Bank under section 6, the Reserve Bank may impose a penalty which may extend to five lakh rupees and in the case of a continuing offence, with an additional fine which may extend to te The Act came into force on 02 Apr 2012.
1[22. Penalties for non-compliance of direction by Reserve Bank.—(1) If any factor fails to comply with any direction issued by the Reserve Bank under section 6, the Reserve Bank may impose a penalty which may extend to five lakh rupees and in the case of a continuing offence, with an additional fine which may extend to ten thousand rupees for every day during which the default continues.
(2) For the purpose of adjudging the penalty under sub-section (1), the Reserve Bank shall serve notice on the factor requiring it to show cause why the amount specified in the notice should not be imposed and a reasonable opportunity of being heard shall also be given to such factor.
(3) Any penalty imposed by the Reserve Bank under this section shall be payable within a period of fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the factor and in the event of failure of the factor to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office of the factor is situated; or, in the case of a factor incorporated outside India, where its principal place of business in India is situated:
Provided that no such direction shall be made except on an application made to the court by the Reserve Bank or any officer authorised by Reserve Bank in this behalf.
(4) The court which makes a direction under sub-section (3) shall issue a certificate specifying the sum payable by the factor and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit.]
Section 22, The Factoring Regulation Act, 2011 (Act 12 of 2012).
Cross-references
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Questions about Section 22
What does Section 22 of the Factoring Regulation Act deal with?
Section 22 of the Factoring Regulation Act is headed "Penalties for non-compliance of direction of Reserve Bank". [22. Penalties for non-compliance of direction by Reserve Bank.—(1) If any factor fails to comply with any direction issued by the Reserve Bank under section 6, the Reserve Bank may impose a penalty which may extend to five lakh rupees and in the case of a continuing offence, with an additional fine
How do I find court cases under Section 22 of the Factoring Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Factoring Regulation Act 22, section 22 Factoring Regulation Act, section 22 of the Factoring Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 22 of the Factoring Regulation Act, and has it changed?
Its own text turns on section 6 (Powers of Reserve Bank to give directions and to collect information from factors), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. One instrument names it without being made under it, most recently Registration of Assignment of Receivables Rules 2012 under Factoring Regulation Act 2011 (2012).
When did Section 22 of the Factoring Regulation Act come into force?
Section 22 of the Factoring Regulation Act, cited as Factoring Regulation Act 22, came into force on 02 Apr 2012, having been enacted on 22 Jan 2012. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 21 Oct 2026. This page is not a substitute for legal advice.