IFSCA allows finance companies and units to function as Credit Institutions

IFSCA vide notification dated January 05, 2024 has notified that the ‘Finance Company’ and ‘Finance Unit’ shall qualify as ‘Credit Institution’ under the Credit Information Companies (Regulation) Act, 2005 and shall be allowed to undertake following activities:

  1. Lending in the form of loans, commitments and guarantees, credit enhancement, securitisation, financial lease, and sale and purchase of portfolios.
  2. Factoring and forfaiting of receivables.

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