International Financial Services Centres Authority (IFSCA) Clarifies Due Date for Recognition of Non-Performing Assets (NPAs) in Factoring and Forfaiting Guidelines
The International Financial Services Centres Authority (IFSCA) has issued a circular providing clarification on the guidelines for factoring and forfaiting of receivables. The clarification pertains to the due date for recognizing Non-Performing Assets (NPAs) as specified in clause 24.1 of a previous circular. The IFSCA has received requests seeking clarity on the applicable due date for NPAs, and in response, it clarifies that the due date mentioned in the clause should be considered as 90 days from the specified due date for payment.
International Financial Services Centres Authority
Circular No. F.No 172/ IFSCA/Finance Company Regulation/2023-24/1 Dated: May 22, 2023
To: All IFSC Banking Units (IBUs)/ Finance Companies/ Finance Units/ Participants on ITFS platform in the International Financial Services Centre (IFSC)
Guidelines on Factoring and Forfaiting of Receivables – Clarification
Reference is drawn to the circular No 172/ IFSCA/ Finance Company Regulations/ 2021-22/10 titled ‘Guidelines on Factoring and Forfaiting of Receivables’ (hereinafter referred to as “said circular”) issued by the International Financial Services Centres Authority (hereinafter referred to as “Authority”) on August 17, 2021. The Authority has received requests seeking for clarification on the due date applicable for recognition of Non-Performing Assets, as specified in clause 24.1 of the said circular.
2. In view of the same, it is clarified that the due date as mentioned in the said clause shall be considered as 90 days from the specified due date for payment.
3. A copy of this circular is available on the website of the Authority at ifsca.gov.in/circular.
Yours faithfully,
R. Kumar
General Manager
rag.kumar@ifsca.gov.in
