RBI Update | ECB Framework Liberalization And M&A Financing Proposals

Every Non-Banking Finance Company ("NBFC") is required to have a Net Owned Fund ("NOF") as prescribed by the Reserve Bank of India ("RBI") from time to time to commence the business of a Non-Banking...

In August 2026, the Reserve Bank of India (RBI) released the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, proposing a comprehensive framework for the way regulated entities determine and apply interest rates on loans. While the Indian banking sector has long operated under a patchwork of institution specific instructions, the draft Directions seek to bring much-needed consistency to interest rate regulation across banks, cooperative banks, regional rural banks (RRBs), all-India financial institutions and NBFCs. If finalised in their present form, the Directions will come into effect from 1 April 2027.

In the world of finance, the term insider trading often evokes images of shady deals and hidden agendas. But what exactly is insider trading? Why is it illegal, and how do laws in India seek to prevent it? Let's dive into this intriguing subject, simplifying the complexities surrounding insider trading laws in India, while exploring the impact of these laws on the financial markets and their role in maintaining fairness.

The Reserve Bank of India has introduced sweeping reforms to cross-border trade regulations through the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, fundamentally reshaping payment timelines, reporting requirements, and compliance frameworks for businesses engaged in international transactions.

When a fixed deposit (FD) holder dies without naming a nominee, families often assume the money is stuck or lost in legal complexity. Indian banking rules allow legal heirs to claim such deposits, provided they submit the right documents and follow the due process. Understanding this distinction is crucial, especially as a large number of deposits remain unclaimed each year due to a lack of awareness.

The Reserve Bank of India has introduced a new classification system for Non-Banking Financial Companies, fundamentally changing registration requirements based on public funding access, customer interface, and asset size thresholds. These regulatory changes create distinct compliance pathways for different NBFC categories while introducing new rules for group entities and overseas investments.

In Kotak Mahindra Bank Limited v Trupti Sanjay Mehta and Others, 2026 INSC 943 (Kotak Mahindra), the Hon’ble Supreme Court of India considered whether a bank as defined under Section 2(1)(c) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) could invoke the provisions of the SARFAESI Act to recover a secured debt acquired from an entity which was not covered under the ambit of the SARFAESI Act at the time of disbursement of the loan.

The Maharashtra Stamp (Fourth Amendment) Act, 2026 introduces a new dedicated stamp duty framework for financial and bank guarantees in Schedule I of the Maharashtra Stamp Act, 1958. This amendment establishes differentiated duty rates based on guarantee value and type, addressing long-standing ambiguities in how such instruments were previously taxed under generic security bond provisions. The reform has significant implications for banks, NBFCs, and entities dealing with government contracts, though quest

Starting a business involves several important steps after incorporation, and one of the first operational requirements is to Open Company Bank Account in India. A dedicated business bank account allows a company...

The Debts Recovery Tribunal, also known as DRT, follows certain rules which relate to the time limits mentioned in the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act or the Act). These limits are not merely procedural requirements and instead are factors which influence the right of the borrower or guarantor depending on the stage of recovery proceedings in question.

The Ministry of Electronics and Information Technology ("MEITY") has now formally notified the Digital Personal Data Protection Rules, 2025 ("DPDP Rules" or "Rules") on 13 November 2025.

India's Insolvency and Bankruptcy Code undergoes significant reform through the 2026 Amendment Act, introducing stricter timelines, enhanced creditor oversight, and frameworks for group and cross-border insolvency. The amendments address persistent challenges in resolution efficiency, withdrawal restrictions, and fraudulent transaction scrutiny while aligning with international best practices to strengthen investor confidence.

Businesses increasingly depend on global cloud infrastructure, international group companies, overseas vendors and remote service providers. As a result, cross-border data transfers have become an important legal and operational issue for organisations operating in India.

Starting a company in India involves several legal procedures and regulatory approvals. One of the most important aspects of incorporation is preparing accurate Company Registration Documents.

The Supreme Court of India in Shanti Devi v. Jagan Devi & Ors. (2025 SCC OnLine SC 1961) has clarified that when a property ownership dispute...

The Supreme Court of India has delivered a landmark ruling in a redevelopment dispute, firmly establishing that Permanent Alternate Accommodation Agreements executed under the Maharashtra Housing and Area Development Act are statutory instruments, not mere private contracts. This decision addresses critical questions about developer obligations, occupant rights, and regulatory authority when redevelopment projects fail to honor commitments made to original tenants.

For many entrepreneurs, the choice between a registered and unregistered partnership is treated as a procedural matter. In reality, the issue of registered vs unregistered partnership firm in India has serious legal...

The Supreme Court has clarified how property registered in the joint names of two wives of a common husband should be treated for succession purposes under the Indian Succession Act, 1925. In a case involving a 1959 property purchase where the husband provided consideration but registered the land in his two wives' names, the Court held that the property vested in the wives themselves, not the husband. The judgment demonstrates how Sections 33, 35 and 38 of the Act must be applied sequentially and separatel

Starting a business involves several important steps after incorporation, and one of the first operational requirements is to Open Company Bank Account in India. A dedicated business bank account allows a company...

Managing or living in a housing society involves far more than day-to-day maintenance. Co-operative Housing Society Laws in Maharashtra govern ownership rights, member obligations...