Factoring Services by Banks

IE-IFS Para Banking and Financial Services Provided by Banks Free JAIIB Capsule 140 views Updated 23 Sep 2026

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IE-IFS · Para Banking and Financial Services Provided by Banks

Banks can undertake factoring services either departmentally or through a subsidiary. If done departmentally, what type of recourse is permitted?

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Departmental factoring services can be provided with recourse OR on a limited/without recourse basis, subject to a Board-approved policy.

The exposure is reckoned on the assignor for with-recourse factoring, and on the debtor for without-recourse factoring.

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Factoring Services by Banks — Full Text

Banks can undertake factoring services either departmentally or through a subsidiary. If done departmentally, what type of recourse is permitted?

Answer

Departmental factoring services can be provided with recourse OR on a limited/without recourse basis, subject to a Board-approved policy.

Additional notes

The exposure is reckoned on the assignor for with-recourse factoring, and on the debtor for without-recourse factoring.

Part of Indian Economy & Indian Financial System · Para Banking and Financial Services Provided by Banks · Last updated 23 Sep 2026

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