MCA has notified the Companies (Registration of Charges) Amendment Rules

Notification No. G.S.R. 320(E).Dated 27th April, 2022

MCA has notified the Companies (Registration of Charges) Amendment Rules, 2022. Amendments has been made in rule 3 (Registration of creation or modification of charge).

MCA notifies that the rule 3 shall not apply to any charge required to be created or modified by a banking company under section 77 (Duty to register charge) in favour of the Reserve Bank of India when any loan or advance made to it u/s 17 (4) (d) of the RBI Act, 1934.

Rule 3 cast a duty on the Company that the particulars of the creation/modification of the charges shall be filed with the Registrar of Companies in E form CHG-1 (for other than debentures) or CHG-9 (for debentures) as the case may be.

Section 17 of the RBI Act defines the manner in which the RBI (the central bank of India) can conduct business. As per section 17 (4) (d) the RBI can grant loan against the security of promissory notes of any scheduled bank or State co-operative Bank, supported by documents of title to goods [such documents having been transferred], assigned, or pledged to any such bank as security for a [loan or advance made] for bona fide commercial or trade transactions, or for the purpose of financing agricultural operations or the marketing of crops.

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