RBI Act, 1934

	RBI Act, 1934
	Reserve Bank of India, 1934
Section	Description
3	The reserve Bank was constituted for taking over management of
	currency from central govt,
3(2)	Body corporate having perpetual succession and a common seal
4	Capital of RBI is Rs.5 crore
7(1)	The Govt. has Power to Issue Directions to the RBI in public
	interest after consultation with the Governor.
7(2)	general superintendence and direction of the affairs and business
	of the RBI to Central Govt.
8	RBI is headed by Governor
8(a)	Govt can appoint 4 Deputy Governors for RBI
8(2)	Govt. may appoint a Deputy Governor of RBI as Chairman of
	NABARD
17	Businesses which the Reserve Bank may transact
17(1)	Reserve Bank is authorised to accept on money on deposit from
	the Central/State Govt. local authorities, banks Without Interest
	No interest on deposit accounts of Cental and State Govt.
17(4)	Reserve Bank is authorised to grant loans and advances to any
	scheduled bank, cooperative banks, SFC's repayable on deman
	or on expiry of fixed periods not exceeding 180 days
17(4)	against the security of stocks, funds and trustee securities, gold or
	silver or documents of title to the same, such bills of exchange
	and promissory notes

17(5)		Loans  and  advances  to  Central  and  State  Govt.  which  are
		repayable not later than 3 months.
19		RBI has been prohibited making loans and advances, drawing
		and accepting bills payable otherwise than on demand, engage in
		trade  or  otherwise  have  a  direct  interest  in  any  commercial,
		industrial, or other undertaking
20		Requires the Reserve Bank to undertake to :
20		Accept monies,make payments, carry out exchange, remittance
		and other banking operations of the Central Govt.
20,21,21A		Reserve Bank manags the public debt and issues new loans on
		behalf of the Central and State Govt. Banker to Govt.
22		Sole right to issue bank notes
23		Issue Dept : Issue of bank notes
23		The assets of Issue Dept of Reserve Bank shall not be subject to
		any liability other than the liabilities of the Issue Dept.
24		Prohibits  issuance  of  bank  notes  by  Reserve  Bank  for
		denomination exceeding Rs.10,000
25		The design, form and materialof  bank  notes is approved by
		Central Govt
27		Prohibits the Reserve Bank from reissuing bank notes which are
		torn, defaced or excessively soiled
29		No Stamp Duty is payable on the bank  notes  issued by the
		Reserve Bank
31		Banks are Prohibited from issuing Demand Drafts payable to
		bearer
33		Assets of Issue Department : Gold Coin, Gold Bullion, foreign
		securities and rupee securities
42(1)		Every scheduled bank has to maintain cash reserve with reserve
		banks: Average daily balance of 3% total of demand and time
		liabilities
42(2)		Every Scheduled Bank shall submit to Reserve Bank a return at
		the close of each alternate Friday showing its demand and time
		liabilities, cash in hand and with other banks, investments etc.
42(6)		Inclusion in and Exclusion from the Second Schedule of a bank
45		Collects credit information from banks
45		calls for returns containing credit information from banks
45-IA		NBFC:obtain a certificate of registration from Reserve Bank
45-IA		NBFC:shall have net owned fund of RS.25 lakhs or such sum not
		exceeding Rs. 200 lakhs
49		Bank Rate is defined

Various acts

		Various Acts
293(1)	Company Act	Borrowing limits of the company
125	Indian Companies	Charge created on companies assets have to be
	Act	registered within 30 days.
11	Indian Contract Act	Lunatics disqualified from contracting
59	Indian Contract Act	Rights of Appropriation is vested with debtor
60	Indian Contract Act	If debtor does not intimate, the right of appropriation is
		vested with creditor
124	Indian Contract Act	Indemnity
148	Indian Contract Act	Bailee-Bailor
171	Indian Contract Act	Banker an absolute right for General Lien
3	Indian Majority Act	A person attains majority at the age of 18
371	Indian Succession	In the absence of will, Legal hairs will have to obtain
	Act	Succession Certificate from the Court

NABARD ACT

THE NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT ACT, 1981

CHAPTER I
PRELIMINARY
1. (1) This Act may be called the National Bank for Agriculture and Rural
Development Act, 1981.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be appointed for
different provisions of this Act, and any reference in any provision to the
commencement of this Act shall be construed as a reference to the coming into force
of that provision.
2. In this Act, unless the context otherwise requires,-
(a) “agriculture” includes horticulture, animal husbandry, forestry, dairy and poultry
farming, pisciculture, and other allied activities, whether or not undertaken jointly
with agriculture and the expression “agricultural operations” shall be construed
accordingly .
Explanation :- For the purposes of this clause, “pisciculture” includes the
development of fisheries, both inland and marine, catching of fish and all activities
connected therewith or incidental thereto;
1. Came into effect from 19 September 2003
2. Subs. by Act No.55 of 2000, S.2
Short title,
extent and
commencement
Definitions
National Bank for Agriculture and Rural Development 2
(b) “Agricultural Refinance and Development Corporation” means the Corporation
established under section 3 of the Agricultural Refinance and Development Corporation
Act, 1963, and renamed under section 3A of that Act as the Agricultural Refinance and
Development Corporation;
(c) “Board” means the Board of Directors of the National Bank;
(d) “central co-operative bank” means the principal co-operative society in a district
in a State, the primary object of which is the financing of other co-operative societies in
that district:
Provided that in addition to such principal society in a district, or where there is no
such principal society in a district, the State Government may declare any one or more cooperative
societies carrying on the business of financing other co-operative societies in
that district to be also or to be a central co-operative bank or central co-operative banks
within the meaning of this definition;
(e) “Chairman” means the Chairman 1[.......] appointed under section 6;
(f) “co-operative society” means a society registered or deemed to be registered,
under the Co-operative Societies Act, 1912 or any other law relating to co-operative
societies for the time being in force in any State;
(g) “crops” includes products of agricultural operations ;
(h) “director” means a director appointed under section 6 ;
(i) “industry in the tiny and decentralised sector” means industrial concerns in the
tiny and decentralised sector and “industrial concern in the tiny and decentralised sector”
means an industrial concern in which the investment in machinery and plant is not in
excess of rupees two lakhs or such higher amount as the Central Government may specify
by notification in this behalf having regard to trends in industrial development and other
relevant factors;
(j) “Managing Director” means the Managing Director appointed under section 6;
(k) “marketing of crops” includes the processing of crops prior to marketing by any
agricultural producers or any organisation of such producers;
(l) “National Bank” means the National Bank for Agriculture and Rural
Development established under section 3;
(m) “notification” means a notification published in the Official Gazette;
(n) “primary rural credit society” means a co-operative society by whatever name
called,-
(1) which has as its object or business the provision of financial accommodation to
its members for agriculture or agricultural operations or for the marketing of crops, or for
rural development; and
(2) the bye-laws of which do not permit admission of any other co-operative
society as member;
1. The words “of the Board” omitted by Act No.55 of 2000, S.3.
10 of 1963
2 of 1912
National Bank for Agriculture and Rural Development 3
Provided that this sub-clause shall not apply to the admission, as a member of a
co-operative society, which is a State co-operative bank or a central co-operative bank by
reason of such bank subscribing to the share capital of the co-operative society out of funds
provided by the State Government for the purpose;
(o) “prescribed” means prescribed by regulations made under this Act;
(p) “regional rural bank” means a regional rural bank established under section 3 of
the Regional Rural Banks Act, 1976;
(q) “rural development” means development of rural areas through any activities
conducive to such development.
Explanation.- For the purposes of this clause,-
(a) activities conducive to development of rural areas include activities relating to
production of goods or provision of services in rural areas and activities for the promotion
of cottage and village industries, industry in the tiny and decentralized sector and smallscale
industry and handicrafts and other rural crafts;
(b) “rural area” means the area comprised in any village and includes the area
comprised in any town, the population of which does not exceed ten thousand or such other
figure as the Reserve Bank may specify from time to time;
(r) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of
the Reserve Bank of India Act, 1934;

THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007
[20th December, 2007]
An Act to provide for the regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for that purpose and for atters connected therewith or incidental thereto.

CHAPTER I
PRELIMINARY
1.(1) This Act may be called the Payment and Settlement Systems Act, 2007
(
2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act, and any reference to the commencement in any such provision of this Act shall be construed as a reference to the commencement of that provision.
2. (1) In this Act, unless the context otherwise equires,—
r
(
a) “bank” means,—
(i) a bank included in the Second Schedule to the eserve Bank of India Act, 1934;
R
(
ii) a post office savings bank;
(iii) a banking company as defined in clause (c) of ection 5, of the Banking Regulation Act, 1949;
s
(iv) a co-operative bank as defined in clause (cci) of section 5, as inserted by section 56, of the Banking egulation Act, 1949; and
R
(v) such other bank as the Reserve Bank may, be otification, specify for the purposes of this Act;
n
(b) “derivative” means an instrument, to be settled at a future date, whose value is derived from change in interest rate, foreign exchange rate, credit rating or redit index, price of securities (also called
c
“underlying”), or any other underlying or a combination of more than one of them and includes interest rate swaps, forward rate agreements, foreign currency swaps, foreign currency rupee swaps, foreign currency options, foreign currency rupee options or any other instrument, as may be specified by the Reserve Bank rom time to time;
f
(c) “electronic funds transfer” means any transfer of
Short title, extent and commencement
Definitions
funds which is initiated by a person by way of instruction, authorisation or order to a bank to debit or credit an account maintained with that bank through electronic means and includes point of sale transfers; automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, nternet and, card payment;
i
(d) “gross” settlement system means a payment system in which each settlement of funds or securities occurs on the basis of separate or individual nstructions;
i
(e) “netting” means the determination by the system provider of the amount of money or securities, due or payable or deliverable, as a result of setting off or adjusting, the payment obligations or delivery obligations among the system participants, including the claims and obligations arising out of the termination by the system provider, on the insolvency or dissolution or winding up of any system participant or such other circumstances as the system provider may specify in its rules or regulations or bye-laws (by whatever name called), of the transactions admitted for settlement at a future date so that only a net claim be demanded or a et obligation be owned;
n
(f) “notification” means a notification published in he Official Gazette;
t
(g) “payment instruction” means any instrument, authorisation or order in any form, including electronic eans, to effect a payment,
m
(i) by a person to a system participant; or
(ii) by a system participant to another system participant;
(h) “payment obligation” means an indebtedness that is owned by one system participant to another system participant as a result of clearing or settlement of one or more payment instructions relating to funds, securities or foreign exchange or derivatives or other ransactions;
t
(i) “payment system” means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange;
Explanation.- For the purposes of this clause,
“payment system” includes the systems enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar perations;
o
(j) “prescribed” means prescribed by regulations made under this Act;
(k) “regulation” means a regulation made under
this Act;
2 of 1934
18 of 1944
2
of 1934
10 of 1949
(l) “Reserve Bank” means the Reserve Bank of
India, constituted under the Reserve Bank of India Act, 934;
1
(m) “securities” means the Government securities as defined in the Public Debt Act, 1944 or such, other securities as may be notified by the Central overnment from time to time under that Act;
G
(n) “settlement” means settlement of payment instructions and includes the settlement of securities, foreign exchange or derivatives or other transactions hich involve payment obligations;
w
(o) “systemic risk” means the risk arising from—
(i) the inability of a system participant to meet his payment obligations under the payment system as and hen they become due; or
w
(ii) any disruption in the system,
which may cause other participants to fail to meet their obligations when due and is likely to have an mpact on the stability of the system:
i
Provided that if any doubt or difference arises as to whether a particular risk is likely to have an impact on the stability of the system, the decision of the Reserve ank shall be final;
B
(p) “system participant” means a bank or any other person participating in a payment system and ncludes the system provider;
i

THE INDIAN PARTNERSHIP ACT 1932

THE INDIAN PARTNERSHIP ACT , 1932.
(ACT NO.9 OF 1932)
(8th April,1932)
An Act to define and amend the law relating to partnership.
WHEREAS it is expedient to define and amend the law relating to
partnership, It is hereby an acted as follows:
CHAPTER - I- PRELIMINARY
1. Short title extend and commencement - (1) This Act may be
called the Indian partnership Act. 1932.
2. It extends to the whole of India except the State of
Jammu & Kashmir.
3. It shall come int0 force on the Ist day of October , 1932,
except Sec. 69 which shall come into force on the Ist day
October, 1933.
2. Definitions - In this Act, unless there is anything repugnant in
the subject or context -
a) An " act of a firm" means any act or omission by all the
partners, or by any partner or agent of the firm which
gives rise to a right enforceable by or against the firm":
b) " business" includes every trade, occupation and
profession.
c) "Prescribed" means prescribed by rules made under this
Act"
d) "Thirdy party " used in relation to a firm or to a partner
therein means any person who is not a partner in the
firms" and
e) expression used but not defined in this Act and defined in
the Indian
3. Application of provisions of Act 9 of 1872 - The unrepealed
provisions of the Indian contract Act, 1872 , save in so far as they are
inconsistent with the express provision of this act, shall continue to
apply to firms
CHAPTER - II - THE NATURE OF PARTNERSHIP
4. Definition of " Partnership", "partner", firm" and "firm
name"- "Partnership" is the relation between persons who have agreed
to share the profits of a business carried on by all or any of them acting
for all.
Persons who have entered into partnership with one another are
called individually " partners" and collectively " a firm" , and the name
under which their business is carried on is called the " firm name"
Short Note'
-Sec.4- Partnership is an association of persons carrying business & in
law the firm name is compendious method of describing partners-
Deoha F.Guzdar Bombay us C.I.T. Air, 1955 SC 74.
5- Partnership not created by status- The relation of partnership
arises from contract and not from status:
and, in particular, the members of a Hindu undivided family
carrying on a family business as such, or a Burmese Buddhist
husband and wife carrying on business as such, are not
partners in such business.

MARKETING IMPORTANT ABBREVIATIONS:

MARKETING IMPORTANT ABBREVIATIONS:
Ad: Advertising
MKT: Marketing
B2B: Business to Business
F500: Fortune 500
EM: Email
DM: Direct Mail
ABM: Account Based marketing
TAP: Targeted account
programs
DM: Digital Marketing
SE: Search Engine
SERP: Search Engine Results
Page
SEM: Search Engine Marketing
SEO: Search Engine
Optimization
SMM: Social Media Marketing
SMO: Social Media
Optimization
PPC: Pay Per Click
PPA: Pay Per Action
PPI: Pay Per Impression
PPL: Pay Per Lead
CTR: Click through rate
CPC: Cost Per Click
CPL: Cost Per Lead
CPS: Cost Per Sale
CMS: Content Management
System
CRM: Content Relationship
Management
MAP: Marketing Automation
Platform
SFA: Sales Force Automation
BI: Business Intelligence
MLM: Multi Level Marketing
FDI: Foreign Direct Investment
POP: Point of Purchase Display
R&D: Research and
Development
UPC: Universal Product Code
POS: Point of Sale Display
ROI: Return on Investment
CLS: Costumer Location
System
RPM: Resale Price
Maintenance
VAT: Value Added Tax
CR: Concession Rate
DRA: Direct Response
Advertising
CLV: Customer Lifetime Value
ecommerce: Electronic
Commerce
CRM: Customer Relationship
Management
NPD: New Product
Development
ROMI: Return on Marketing
Investment
LTV: Life Time Value
BDI: Brand Development Index
CDI: Category Development
Index
MR: Market Research
AIM: Alternative Investment
Market
MS: Market Share
TMV: True Market Value
MAA: Marketing Authorization
Application
MS: Market Surveillance
WOMM: Word of Mouth
Marketing
IDRA: Industries Development
and Regulation Act
UX: User Experience
GRS: Gross rating Point
BEP: Break Even Point
PAN: Permanent Account
Number
IMF: International Monetary
Fund
EOQ: Economic Order quality

Role and Function of the Reserve Bank of India (RBI)

Role and Function of the Reserve Bank of
India (RBI)
In every country there is one organization which works as the central
bank. The function of the central bank of a country is to control and
monitor the banking and financial system of the country. In India, the
Reserve Bank of India (RBI) is the Central Bank.
The RBI was established in 1935. It was nationalised in 1949. The RBI
plays role of regulator of the banking system in India. The Banking
Regulation Act 1949 and the RBI Act 1953 has given the RBI the power
to regulate the banking system.
The RBI has different functions in different roles. Below, we share and
discuss some of the functions of the RBI.
RBI is the Regulator of Financial System
The RBI regulates the Indian banking and financial system by issuing
broad guidelines and instructions. The objectives of these regulations
include:
• Controlling money supply in the system,
• Monitoring different key indicators like GDP and inflation,
• Maintaining people’s confidence in the banking and financial
system, and
• Providing different tools for customers’ help, such as acting as the
“Banking Ombudsman.
RBI is the Issuer of Monetary Policy
The RBI formulates monetary policy twice a year. It reviews the
policy every quarter as well. The main objectives of monitoring
monetary policy are:
• Inflation control
• Control on bank credit
• Interest rate control
The tools used for implementation of the objectives of monetary
policy are:
• Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio
(SLR),
• Open market operations,
• Different Rates such as repo rate, reverse repo rate, and bank
rate.RBI is the Issuer of Currency
Section 22 of the RBI Act gives authority to the RBI to issue
currency notes. The RBI also takes action to control circulation of
fake currency.
RBI is the Controller and Supervisor of Banking Systems
The RBI has been assigned the role of controlling and supervising
the bank system in India. The RBI is responsible for controlling the
overall operations of all banks in India. These banks may be:
• Public sector banks
• Private sector banks
• Foreign banks
• Co-operative banks, or
• Regional rural banks
The control and supervisory roles of the Reserve Bank of India is
done through the following:
Issue Of Licence: Under the Banking Regulation Act 1949, the RBI
has been given powers to grant licenses to commence new banking
operations. The RBI also grants licenses to open new branches for
existing banks. Under the licensing policy, the RBI provides banking
services in areas that do not have this facility.
Prudential Norms: The RBI issues guidelines for credit control and
management. The RBI is a member of the Banking Committee on
Banking Supervision (BCBS). As such, they are responsible for
implementation of international standards of capital adequacy
norms and asset classification.
Corporate Governance: The RBI has power to control the
appointment of the chairman and directors of banks in India. The
RBI has powers to appoint additional directors in banks as well.
KYC Norms: To curb money laundering and prevent the use of the
banking system for financial crimes, The RBI has “Know Your
Customer“ guidelines. Every bank has to ensure KYC norms are
applied before allowing someone to open an account.
Transparency Norms: This means that every bank has to disclose
their charges for providing services and customers have the right to
know these charges.
Risk Management: The RBI provides guidelines to banks for taking
the steps that are necessary to mitigate risk. They do this through
risk management in basel norms.
Audit and Inspection: The procedure of audit and inspection is
controlled by the RBI through off-site and on-site monitoring
system. On-site inspection is done by the RBI on the basis of
“CAMELS”. Capital adequacy; Asset quality; Management;
Earning; Liquidity; System and control.
Foreign Exchange Control: The RBI plays a crucial role in foreign
exchange transactions. It does due diligence on every foreign
transaction, including the inflow and outflow of foreign exchange. It
takes steps to stop the fall in value of the Indian Rupee. The RBI
also takes necessary steps to control the current account deficit.
They also give support to promote export and the RBI provides a
variety of options for NRIs.
Development: Being the banker of the Government of India, the
RBI is responsible for implementation of the government’s policies
related to agriculture and rural development. The RBI also ensures
the flow of credit to other priority sectors as well. Section 54 of the
RBI gives stress on giving specialized support for rural
development. Priority sector lending is also in key focus area of the
RBI.
Apart from the above, the RBI publishes periodical review and data
related to banking. The role and functions of the RBI cannot be
described in a brief write up. The RBI plays a very important role in
every aspect related to banking and finance. Finally the control of
NBFCs and others in the financial world is also assigned with RBI.

FUNCTIONS OF RESERVE BANK OF INDIA

FUNCTIONS OF RESERVE BANK OF INDIA
Main Functions of RBI.
1. Monetary Authority: Formulates, Implements & Monitors the Monetary policy.
2. Regulator & Supervisor of Financial System: Prescribes Board Parameters of
Banking Operations within which the Country's Banking & Financial System
functions.
3. Manages the Foreign Exchange Management Act, 1999: To facilitate External
trade & Payment/Promote Orderly Development & Maintenance of Foreign
Exchange market in India.
4. Issuer of Currency: Issues & Exchanges or Destroys Currency & Coins not fit
for Circulation.
Perform a wide Range of Promotional functions to Support National.
 Related Functions.
1. Banker to the Govt: Performs merchants Banking function for the Central & the
Stage Governments; also Acts as their Banker.
2. Banker to Banks: Maintains Banking accounts (A/c's) of all Scheduled Banks.
ACTS ADMINISTERED BY RBI.
1. Reserve Bank of India (RBI) Act, 1934
2. Public Debit Act, 1944/ Govt. Securities Act, 2006
3. Government Securities Regulation Act, 2007
4. Banking Regulation Act, 1949
5. Foreign Exchange Management Act, 1999
6. Securitization & Reconstruction of Financial Asrets & Enforcement of Security
Interest Act, 2002 (CHAPTER-II)
7. Credit Information Companies (Regulation) Act, 2005
8. Payment & Settlement Systems Act, 2007
9. Payment & Settlement Systems Regulations Act, 2008 and Amended upto 2011
& BPSS Regulations Act, 2008
10. Factoring Regulation Act, 2011
11. Payment & Settlement Systems (AMENDMENT) Act, 2015- No: 18/2015.
SOME OTHER BANKING RELEVANT ACTS:
1. NI (Negotiable Instruments) Act, 1881
2. Bankers Books Evidence Act, 1891
3. State Bank of India (SBI) Act, 1955
4. Companies Act, 1956/Companies Act, 2013
5. Securities Contact (Regulation) Act, 1956
6. State Bank of India (SBI)‐(Subsidiary Banks) Act, 1959
7. Deposit Insurance & Credit Guarantee Corporation Act, 1961
8. Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970
9. National Bank for Agriculture & Rural Development (NABARD), Act 1981
10. National Housing Bank Act, 1987
11. Recovery of Debts Due to Banks & Financial Institution Act, 1993
12. Competition Act, 2002
13. Indian Coinage Act, 2011: Governs Currency & Coins
14. Banking Secrecy Act
15. Industrial Development Bank (Transfer of Undertaking & Repeal) Act, 1993.

FACTORING REGULATION ACT, 2011

FACTORING REGULATION ACT, 2011

An Act to provide for and regulate assignment of receivables by making provision for registration therefor and rights and obligations of parties to contract for assignment of receivables and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1. (1) This Act may be called the Factoring Regulation Act, 2011.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Definitions.
2. In this Act, unless the context otherwise requires,—
(a) ''assignment'' means transfer by agreement, of undivided interest of any assignor in any receivable due from any debtor in favour of a factor and includes an assignment where either the assignor or the debtor, are situated or established outside India.
Explanation:—For the purposes of this clause, undivided interest of any assignor in any receivable shall not include creation of rights in receivables as security for loans and advances or other obligations by a bank or a financial institution;
(b) "assignee" means a factor in whose favour the receivable is transferred;
(c) "assignor" means any person who is the owner of any receivable;
(d) "bank" means,—
(i) a banking company;
(ii) a corresponding new bank;
(iii) the State Bank of India;
(iv) a subsidiary bank;
(v) such other bank which the Central Government may by notification specify for the purposes of this Act on the recommendations of the Reserve Bank; or
(vi) a Multi-State Co-operative Society registered under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) and licensed to undertake business of banking by the Reserve Bank under the provisions of the Banking Regulation Act, 1949 (10 of 1949);
(e) "banking company" shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(f) "business enterprise" means any enterprise or medium enterprise, micro enterprise or small enterprise as defined in clauses (e), (g), (h) and (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006.), respectively engaged in any business activity;
(g) "corresponding new bank" shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(h) "debtor" means any person liable to the assignor, whether under a contract or otherwise, to pay any receivable or discharge any obligation in respect of the receivable whether existing, accruing, future, conditional or contingent;
(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 (2 of 1934) which has been granted a certificate of registration under sub-section (1) of section 3 or any body corporate established under an Act of Parliament or any State Legislature or any Bank or any company registered under the Companies Act, 1956 (1 of 1956) engaged in the factoring business;
(j) "factoring business" means the business of acquisition of receivables of assignor by accepting assignment of such receivables or financing, whether by way of making loans or advances or otherwise against the security interest over any receivables but does not include—
(i) credit facilities provided by a bank in its ordinary course of business against security of receivables;
(ii) any activity as commission agent or otherwise for sale of agricultural produce or goods of any kind whatsoever or any activity relating to the production, storage, supply, distribution, acquisition or control of such produce or goods or provision of any services;
Explanation:—For the purposes of this clause—
(i) the expression "agricultural produce" shall have the meaning assigned to it under clause (a) of section 2 of the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937); and
(ii) the expressions "goods" and "commission agent" shall have the meanings assigned to them respectively under clause (d) andExplanation (ii) of clause (i) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952);
(k) "financial contract" means any spot, forward, future, option or swap transaction involving interest rates, commodities, currencies, shares, bonds, debentures or any other financial instrument, any repurchase of securities and lending transaction or any other similar transaction or combination of such transactions entered into in the financial markets;
(l) "netting agreement" means any agreement among the system participants for the purpose of determination by the system provider of the amount of money or securities due or payable or deliverable as a result of setting off or adjusting the payment obligations or delivery obligations among the system participants, including the claims and obligations arising out of the termination by the system provider, on the insolvency or dissolution or winding up of any
system participant or such circumstances as the system provider, may specify in its rules or regulations or bye-laws (by whatever name called), of the transactions admitted for settlement at a future date so that only a net claim be demanded or a net obligation be owned;
(m) "notification" means a notification published in the Official Gazette;
(n) "prescribed" means prescribed by rules made under this Act;
(o) "property" means,—
(i) the immovable property;
(ii) the movable property;
(iii) any debt or any right to receive payment of money, whether secured or unsecured;
(iv) the receivables;
(v) the intangible assets, being know-how, patent, copyright, design, trade mark, licence, franchise or any other business or commercial right of similar nature;
(p) "receivables" mean all or part of or undivided interest in any right of any person under a contract including an international contract where either the assignor or the debtor or the assignee is situated or established in a State outside India; to payment of a monetary sum whether such right is existing, future, accruing, conditional or contingent arising from and includes, any arrangement requiring payment of toll or any other sum, by whatever name called, for the use of any infrastructure facility or services;
(q) "Reserve Bank", means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934)