Which Bill was passed by the Parliament, in July 2021, to help in the availability of working capital for the micro, small and medium enterprises sector?

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Accepted Answer

1. Identify the bill: The Factoring Regulation (Amendment) Bill, 2021 (option $3$) was passed by Parliament in July 2021.

2. Purpose: The Amendment strengthens the Factoring framework by clarifying assignment of receivables, enabling easier transfer of invoices/receivables to factors and improving recovery and secondary market for receivables.

3. Effect on MSMEs: By making factoring simpler and legally clearer, MSMEs can convert outstanding receivables into immediate funds, thereby increasing availability of working capital. This directly targets working-capital liquidity for micro, small and medium enterprises.

4. Why other options are incorrect:
- The Essential Commodities (Amendment) Bill, 2020 deals with stocking limits and supply regulation, not working capital for MSMEs.
- The Minerals Laws (Amendment) Bill, 2020 concerns mining sector governance.
- The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 relates to insolvency processes, not primarily to providing working capital through receivables financing.

Therefore the correct choice is option $3$ (Factoring Regulation (Amendment) Bill, 2021).

FINAL_ANSWER: c

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