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Master Circular: NBFC-Factor Directions 2012

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/50 · issued 01 Jul 2013 · ~1 min read
Quick answerRBI consolidated all instructions for NBFC-Factors under the Factoring Regulation Act, 2011. This circular updates prudential norms, registration, and conduct requirements as of June 30, 2013, for NBFCs engaged in factoring business.

What changed

RBI issued a master circular updating the NBFC-Factor Directions 2012, consolidating all current instructions as of June 30, 2013. It reiterates that factoring companies (other than banks and government entities) must register as NBFC-Factors and comply with prudential norms. Existing NBFCs seeking reclassification must apply within six months with a statutory auditor's certificate.

What it means for you

NBFCs engaged in factoring must ensure their registration and classification align with the Factoring Regulation Act. The circular reinforces that only registered NBFC-Factors can conduct factoring business, except for exempt entities like banks. Lenders should review their asset and income patterns to confirm compliance with the principal business definition.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All NBFCs engaged in factoring business, NBFCs seeking to enter factoring business, Statutory auditors of NBFCs

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the deadline for existing NBFCs to reclassify as NBFC-Factor?

Existing NBFCs must approach their Regional Office within six months from July 1, 2013, with a statutory auditor's certificate indicating asset and income pattern.

Which entities are exempt from registering as NBFC-Factor?

Banks, corporations established under an Act of Parliament or State Legislature, and government companies as defined under Section 617 of the Companies Act, 1956, are exempt.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1109: DNBS (PD) CC No.348/03.02.001/2013-14 — "Master Circular - The Non-Banking Financial Company -Factors (Reserve Bank) Directions, 2012" dated July 1, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/50 DNBS (PD) CC No.348/ 03.02.001/2013-14 July 1, 2013 All NBFCs Dear Sirs, Master Circular – The Non-Banking Financial Company -Factors (Reserve Bank) Directions, 2012 As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars / notifications . The instructions contained in the captioned circular updated as on June 30, 2013 are reproduced below. The updated notification has also been placed on the RBI web-site ( http://www.rbi.org.in ). Yours sincerely, (N. S. Vishwanathan) Principal Chief General Manager Table of Contents Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/50 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8159&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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