Devanshee Dave
Reporter, Trade Treasury Payments
NewsPublished 9 Nov 2026
Update
FCI (Factors Chain International) and the Indian Banks’ Association (IBA) have signed a Memorandum of Understanding (MOU) establishing a strategic institutional partnership to support the development of factoring, receivables finance, and supply chain finance in India.
This agreement brings together IBA, showcasing the banking sector of one of the world’s largest economies, and FCI, the global representative body for the factoring and receivables finance industry.
The partnership is a milestone in the relationship between India’s banking industry and the international factoring community. It establishes a formal framework through which both organisations will combine their institutional reach, industry expertise, and resources to support the development of receivables finance across India.
The MOU was signed in Mumbai on 30 October 2026 by Ms Betül Kurtuluş, Secretary General of FCI, and Mr Ravi Valecha, Member of the FCI Executive Committee, representing FCI, and Shri Gopal Murli Bhagat, Deputy Chief Executive of IBA, representing the Indian Banks’ Association, in the presence of Shri Atul Kumar Goel, Chief Executive of IBA.
With an economy exceeding USD 4 trillion and annual exports reaching a record USD 863 billion in FY 2025–26, India stands as one of the world’s largest and most dynamic markets. The country’s ambition to achieve USD 2 trillion in annual exports by 2030-31, alongside its Viksit Bharat vision of becoming a developed nation by 2047, underscores the critical importance of a robust financial sector capable of meeting growing business financing needs and supporting international trade.
Factoring and receivables finance play a vital role in this development by providing businesses with access to working capital while strengthening domestic and international supply chains.
Through this agreement, IBA establishes a direct institutional connection between India’s banking community and the global factoring industry, while FCI gains a structured framework for collaborating with Indian banks to promote market development, professional capabilities, and international cooperation.
IBA provides a collective platform for India’s banking institutions, supporting industry coordination, dialogue with policymakers and regulators, and the advancement of banking practices.
FCI contributes its global network of financial institutions, international factoring expertise, industry standards, professional education, and extensive experience in developing receivables finance markets worldwide.
Together, the organisations aim to create opportunities for Indian banks to strengthen their factoring and receivables finance capabilities, exchange knowledge and best practices, deepen international connections, and expand their participation in cross-border financing.
The MOU establishes a framework for sustained cooperation focusing on professional education and capacity building, knowledge exchange, international best practices, industry research, market awareness, and stakeholder engagement.
Potential joint initiatives include technical workshops, industry publications, conferences, and other programmes designed to strengthen the Indian receivables finance market. Both organisations will identify priorities and review progress as their cooperation evolves.
Shri Atul Kumar Goel, Chief Executive of IBA, said, “Factoring has the potential to transform the financing landscape for Indian MSMEs by unlocking liquidity tied up in receivables and strengthening their ability to compete in global markets.”
“Through our partnership with FCI, IBA is committed to promoting awareness, building capacity and enabling member banks to adopt factoring as a mainstream financing solution to support India’s export growth, firmly aligning with the Government of India’s Export Promotion Mission (EPM) to aggressively scale national export volumes and enhance global trade competitiveness.”
Ms Chenyue Mao, Chairwoman of FCI, quoted, “India has significant potential for the further development of factoring and receivables finance. Through this partnership, we have an opportunity to bring FCI’s international experience, expertise and global network closer to India’s banking community.”
“By working together with IBA, we can support greater industry awareness, strengthen professional capabilities and encourage the wider adoption of factoring as an important financing solution for Indian businesses, particularly MSMEs.”
Ms Betül Kurtuluş, Secretary General of FCI, commented, “This agreement marks a significant milestone for FCI and our engagement with India’s banking sector. By combining IBA’s institutional reach with FCI’s global network and expertise, we are establishing a strong foundation for long-term cooperation.”
“Our ambition is to turn this partnership into concrete initiatives that strengthen banks’ factoring capabilities, expand international connections and support India’s ambitious trade and economic growth objectives.”
Mr Ravi Valecha, Member of the FCI Executive Committee, said, “This partnership creates an important bridge between India’s banking sector and the global factoring community. By combining FCI’s international expertise with IBA’s extensive industry reach, we can strengthen receivables finance capabilities in India, expand access to working capital for Indian businesses, particularly MSMEs, and support their growing participation in domestic and international trade.”
The agreement was reached after FCI’s regional conference, “Advancing Factoring in India: Global Insights, Local Opportunities,” held in Mumbai on 26-27 October 2026.
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