the due diligence process for the clients. 33. the act has given powers to the reserve bank to stipulate conditions for “ principal business ” of a factor as also powers to give directions and collect information from factors. subsequent to the passing of the act, the reserve bank has created a separate category of nbfcs viz ; nbfc - factors and issued directions for their regulation. the prudential norms as applicable to nbfcs engaged in lending business, has also been extended to the nbfcfactors. further, bank finance to factoring companies and the factoring business conducted by banks are also regulated by the rbi. challenges faced by factoring sector 34. though the enactment of the factoring regulation act has potentially removed all the major impediments that the factoring sector faced in the country, nevertheless, the sector has few other items on its wish list, the primary among which are introduction of credit insurance in the factoring business and extending the scope of sarfaesi act to cover nbfcs for speedy enforcement of security interest7. as regards credit insurance, the finance minister, in the union budget 2013 – 14, has made an announcement for setting up a credit guarantee fund with sidbi for factoring, with a rs 5 billion corpus. as far as factors impending factoring – “ why is factoring not picking up in india post enactment of the new act? ” by nidhi bothra and shampita das, vinod kothari & company accessed from http : / / india - financing. com / factors _ impending _ factoring _ why _ is _ factoring _ not _ picking _ up _ in _ india _ post _ enactment _ of _ the _ new _ act. pdf. bis central bankers ’ speeches extension of the provisions of the sarfaesi act to nbfc is concerned, the final call rests with the government of india. 35. low penetration of factoring business in the country still remains a challenge which could be on account of lack of awareness among the users. with the necessary law now in place, sincere attempts need to be made by the industry through its associations and other fora for articulating the benefits of factoring as not just an alternative source of finance but also an avenue for providing a bouquet of financial services vis - a - vis traditional finance, to small scale industries. they should be able to identify the untapped potential clientele, especially in various sme industry

that track the entire life cycle of the it resource from procurement to end - of - life? another important element to it resource management is human capital management. do we have a separate policy for grooming hr resource towards it? do we have a proper outsourcing policy? are we using the right type of technology? for instance, should we go in for virtualisation, cloud computing? are we making adequate efforts to implement green computing? some of these are difficult questions for many banks but critical for the officials attending this seminar to get answers to perform their roles effectively. it performance management it performance assessment and management is equally vital to ensure efficient it services. do we periodically stress test our systems? how much maximum volume can it handle in a single day? if for instance, all the nrega payments are made as electronic benefit transfers, do we have an idea about the possible daily volume? it could well be in millions. if all government payments are made in electronic format, can the current it systems of the agency banks handle them? in other words, how scalable is the it system? it policies and procedures it implementation being key to sustenance of successful business require critical policies to be driven from the board level. these include : it administration policy and procedures it asset management policy and procedures it security policy and disaster recovery procedures it training and support it project management guidelines and procedures having discussed about the importance of it in the world of business and banking, let us look at a related issue - the project management scenario. while it has added great value to businesses there are innumerable examples of large it project failures, time and budget over runs. let me cite a few to emphasise the need for greater attention to be paid to this area. a project, named " shield ", aimed at providing live camera links from police cars and other fixed bis central bankers ’ speeches locations to a central command location in the us failed to achieve the desired results. equipment failures, poor planning and poor training meant that as an integrated system, it was worthless. staff was unfamiliar with how to use the system, the data collected through the system was of questionable value and failure to understand operating environment in which the system would function resulted in equipment that failed under the extreme temperatures that were not uncommon in those areas. contributing factors as reported in the press were : lack of oversight, faulty equipment, poor training, underestimation of complexity and ineffective procurement practices. rollout of the care records service component of the uk