RBI allows Theme Neutral applications as a part of On Tap application facility under Regulatory Sandbox
It will help in innovation and constructive engagement of FinTech.
RBI
RBI notifies Directions on Interest rate to be on paid on Deposits
Banks cannot pay Offer prize/ lottery/ free tips any other initiative having element of chance for mobilizing deposits.
‘Will facilitate receipt of legal tender’; Bombay HC directs RBI to accept demonetized bank notes worth Rs 20 lakhs seized before deposit deadline
The Income Tax Department stated that it did not intend to seize the bank notes pursuant to which the police authorities returned the same to the petitioners on 14-1-2017.
RBI notifies directions relating to Forward Contracts in Government Securities
In case of violation, RBI can disallow the violator from dealing in bond forwards for a period of 1 month at a time.
HIGH COURT FEBRUARY 2025 WEEKLY ROUNDUP | Stories on Masaba’s Trade Mark; Sidhu Moosewala’s Murder; Amandeep Singh Batra’s petition; Human Sacrifice; and more
A quick legal roundup to cover important stories from all High Courts this week.
Despite acknowledging ECL’s violations, RBI failed to act; Delhi High Court upholds direction to RBI to intervene
It is an elementary principle that when a public authority is vested with specific powers, it is duty bound to act accordingly. Therefore, any failure to exercise statutory powers gives rise to a cause of action to secure performance of such duty by way of issuance of writ of mandamus under Article 226.
RBI streamlines guidelines for ARC – borrower settlements
Borrowers with dues of more than Rs. 1 crore can settle their amount only after IACs evaluation.
Government appoints IAS Sanjay Malhotra as the 26th Governor of the Reserve Bank of India
The 25th Governor of the Reserve Bank of India, Shaktikanta Das, served at the post for 6 years.
IBBI and INSOL India 2nd International Conclave on ‘Insolvency Resolution: Evolution and Global Perspectives’
The Insolvency Bankruptcy Board of India (‘IBBI’) and INSOL India held the 2nd International Conclave in Delhi on 7th December to engage in the path-breaking discourse surrounding the ever-evolving space of insolvency and bankruptcy.
RBI re-defines ‘Startup’ vide Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024
The 2024 Regulations have amended the meaning of startup in the explanations to Regulation 5 and Schedule I para 1 (vii) of the 2015 Regulations.
RBI imposes penalty of Rs. 7.9 lakh on Muthoot Vehicle & Asset Finance Ltd. for non-compliance with Liquidity Risk Management Framework and RBI Directions for NBFCs
Apart from failing to disclose information regarding LCR and conveying the loan amounts sanctioned, MVAFL also failed to submit data of gold loan customers.
RBI imposes penalty of Rs. 10.4 lakhs on HP Financial Services for failing to adhere to its KYC, NBFC, and IT framework regulations for the non-banking financial sector
HP Financial Services not only failed to establish a periodic review of risk categorization of accounts but also failed to form an IT Strategy Committee as well as an IT Steering Committee.
RBI imposes penalty amounting to Rs. 1 Crore on HDFC Bank Limited for non-compliance with directions
The penalty imposed was based on deficiencies in statutory and regulatory compliance on behalf of HDFC bank.
RBI imposes penalty amounting to Rs. 1.91 crores on Axis bank Limited for failure to comply with Banking Regulation Act, 1949 and RBI Directions
Axis bank contravened S. 19(1)(a) of the Banking Regulation Act as one of its wholly owned subsidiaries was engaged in an impermissible business as per S. 6 of the Act.
Directions issued by Govt and RBI under S. 9, MSMED Act and Ss. 21 & 35-A, Banking Regulation Act respectively, have statutory force: SC
The matter revolved around the Notification dated 29-05-2015 issued by the Central Government, containing instructions for the Framework for Revival and Rehabilitation of MSMEs.
RBI introduces provisions for ‘Sovereign Green Bonds’ vide Foreign Exchange Management (Debt Instruments) (Third Amendment) Regulations, 2024
The 2024 Regulations provide that a person resident outside India who maintains a securities account with a depository in IFSC in India would be able to purchase or sell Sovereign Green Bonds issued by the Government of India.
RBI imposes penalty of Rs. 1.9 Lakh on Muthoot Finance Ltd. for non-compliance with KYC Directions, 2016
Muthoot Finance had been allotting more than one UCIC to its individual customers in contradiction to the 2016 KYC Directions issued by the RBI.
RBI revises Master Directions on Fraud Risk Management in Regulated Entities; rescinds 36 Circulars
The 2024 Master Directions are principle-based and have been issued to strengthen the role of the Board in overall governance as well as oversight of fraud risk management in Regulated Entities.
RBI imposes penalty of Rs. 1.31 Crore on Punjab National Bank for non-compliance of directions on ‘Loans and Advances’ and ‘KYC’
The Reserve Bank of India imposed monetary penalty on Punjab National Bank due to deficiencies in regulatory compliance.
Penal Charges — RBI’s Move Towards Implementation of Fair Lending Practices
by Karan Ajitsaria† and Nitesh Sharma††