The IAF is, as mentioned, aligned to our strategy and rooted in our regulatory philosophy whereby regulation should be forward-looking, connected, proportionate, predictable, transparent and agile. We have considered the changing financial services landscape and international developments in the area of individual accountability.
Some banks and financial institutions in India have already launched factoring services and I would urge more banks to offer such services, particularly for the MSMEs. To provide a legislative framework for factoring services, the Parliament has passed the Factoring Regulation Act that would address delays in payment and liquidity problems of micro and small enterprises.