Registration of factors
Section 3 of the Factoring Regulation Act, 2011 deals with registration of factors. No factor shall commence or carry on the factoring business unless it obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business under this Act. The Act came into force on 02 Apr 2012.
(1) No factor shall commence or carry on the factoring business unless it obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business under this Act.
(2) Every factor shall make an application for registration to the Reserve Bank in such form and manner as it may specify:
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(3) Every applicant for grant of a certificate of a registration as a factor shall comply, for the purpose of registration, with all the requirements to be fulfilled by an applicant for grant of certificate of registration as non-banking financial company under the Reserve Bank of India Act, 1934 (2 of 1934) and all the provisions of that Act, so far as they relate to the registration of non-banking financial companies, shall (except those provided for under this Act) mutatis mutandis apply.
2[(4) The Reserve Bank may grant the certificate of registration in such manner as may be specified by regulations.]
(5) Save as otherwise provided in this Act, every factor including factors not subject to requirement of registration under section 5, shall be governed by the Reserve Bank of India Act, 1934 (2 of 1934), the rules and regulations made thereunder and the directions or guidelines issued by the Reserve Bank, from time to time.
Section 3, The Factoring Regulation Act, 2011 (Act 12 of 2012).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 2 instruments name this provision in its title or its text without being made under it.
Questions about Section 3
What does Section 3 of the Factoring Regulation Act deal with?
Section 3 of the Factoring Regulation Act is headed "Registration of factors". No factor shall commence or carry on the factoring business unless it obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business under this Act.
How do I find court cases under Section 3 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 3, section 3 Factoring Regulation Act, section 3 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 3 of the Factoring Regulation Act, and has it changed?
Its own text turns on section 5 (Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently Registration_of_Factors_(Reserve_Bank)_Regulations-2022 (2022).
When did Section 3 of the Factoring Regulation Act come into force?
Section 3 of the Factoring Regulation Act, cited as Factoring Regulation Act 3, 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
- 2. Definitions1098 words
- 19. Registration of certain assignments of receivables transactions307 words
- 31. Provisions of this Act not to apply or affect in certain cases298 words
- 22. Penalties for non-compliance of direction of Reserve Bank296 words
- 7. Assignment of receivables247 words
- 25. Offences by factors226 words
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 20 Oct 2026. This page is not a substitute for legal advice.