Section 2. Definitions

2. Definitions .—In this Act, unless the context otherwise requires,— (a) "assignment" means[2] [transfer by agreement to a factor of an undivided interest, in whole or in part, in the receivables of an assignor due from a debtor and includes such transfer where either the assignor or the debtor is situated or established outside India]. — Explanation. For the purposes of this clause, undivided interest of any assignor in any receivable shall not include creation of rights in receivables as security for loans and advances or other obligations by a bank or a financial institution; (b) "assignee" means a factor in whose favour the receivable is transferred; (c) "assignor" means any person who is the owner of any receivable; (d) "bank" means, — - (i) a banking company; - (ii) a corresponding new bank; (iii) the State Bank of India; (iv) a subsidiary bank; (v) such other bank which the Central Government may by notification specify for the purposes of this Act on the recommendations of the Reserve Bank; or (vi) a Multi-State Co-operative Society registered under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) and licensed to undertake business of banking by the Reserve Bank under the provisions of the Banking Regulation Act, 1949 (10 of 1949); (e) "banking company" shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (f) "business enterprise" means any enterprise or medium enterprise, micro enterprise or small enterprise as defined in clauses (e), (g), (h) and (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), respectively engaged in any business activity;