It has been decided that transfer of such receivables by eligible transferors will be exempted from Minimum Holding Period (MHP) requirement, subject to fulfilment of the following conditions
The residual maturity of such receivables, at the time of transfer, should not be more than 90 days, and
As specified under clauses 10 and 35 of these directions, the transferee conducts proper credit appraisal of the drawee of the bill, before acquiring such receivables.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12582&Mode=0
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