Question

    Which of the following entities is considered a "factor"

    according to the Factoring Regulation Act, 2011?
    A A bank Correct Answer Incorrect Answer
    B A commercial bank Correct Answer Incorrect Answer
    C A non-profit organization Correct Answer Incorrect Answer
    D A non-banking financial company Correct Answer Incorrect Answer
    E Any individual engaged in financial transactions Correct Answer Incorrect Answer

    Solution

    Explanation: Section 2 Definitions: (i) “factor” means a non-banking financial company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 which has been granted a certificate of registration under sub-section (1) of section 3 or anybody corporate established under an Act of Parliament or any State Legislature or any Bank or any company registered under the Companies Act, 1956 engaged in the factoring business.

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