India – Export Factoring On Non-Recourse Basis.

AD Category- I banks (AD Banks) are now permitted to provide 'export factoring'services to exporters on 'with recourse'basis without the prior approval of RBI subject to certain conditions including inter alia that (i) the AD Bank should ensure that invoices purchased represent genuine trade invoices, and (ii) the AD Bank (acting as a export factor) should have an arrangement with an import factor for credit evaluation and collection of payment. 

Circular