– Anita Baid | finserv@vinodkothari.com RBI has introduced significant amendments concerning the opening and operation of Current Accounts and Overdraft (OD) facilities. In case of commercial banks, the new provisions contained in Chapter XIA – ‘Opening of Current Accounts and CC / OD Accounts by Banks’, replace the erstwhile framework outlined in Chapter XI of […]
– Anita Baid | finserv@vinodkothari.com The identity verification process, specifically in case of digital transactions, has taken another step with the introduction of the Aadhaar Verifiable Credential (AVC) verification process. Introduced vide the Aadhaar (Authentication and Offline Verification) Amendment Regulations, 2025, this intends to ease the KYC verification process by regulated entities. For all these […]
RBI imposes restrictions on imposition of prepayment charges on floating rate loans – Anita Baid, finserv@vinodkothari.com Following the announcement made in the Statement on Developmental and Regulatory Policies dated October 9, 2024, the RBI had released a draft circular inviting comments from stakeholders on its proposed guidelines regarding the levy of foreclosure charges and pre-payment […]
Vinod Kothari and Anita Baid l finserv@vinodkothari.com What is the notification on change in Risk Weights (RWs) issued by RBI? RBI has issued notification dated August 12, 2024 on Review of Risk Weights for Housing Finance Companies (HFCs). Accordingly, with immediate effect, the RWsfor computation of risk weighted assets (RWAs), for capital adequacy purposes, for […]
– Anita Baid, finserv@vinodkothari.com Streamlining internal compliance monitoring function The recent RBI directive on streamlining the internal compliance monitoring function by leveraging technology has raised concerns regarding actionable on the part of regulated entities covered thereunder. The notification on Streamlining of Internal Compliance monitoring function – leveraging use of technology dated January 31, 2024 is […]
– Anita Baid, Vice President | anita@vinodkothari.com Updated as on 09.11.2023 The Reserve Bank of India (RBI) has issued a notification outlining a new regulatory framework for Non-Banking Financial Companies (NBFCs) on October 19, 2023 (‘SBR Framework’). The RBI has played a crucial role in regulating the NBFC sector over the years. With the sector’s […]
Key Points as per the RBI’s Directions on Risk Management under the KYC and PML Regime -Anita Baid | Vice President | anita@vinodkothari.com In line with the Reserve Bank of India’s (RBI) directions on risk management under the Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards, Non-Banking Financial Companies (NBFCs) are required to […]
Transfer of Factoring Units to come under the purview of TLE in lieu of the regulator’s move to enhance TReDs Platform – Anita Baid, Vice President | finserv@vinodkothari.com The concept of Trade Receivables Discounting System (TReDS) was introduced by RBI to enable discounting of invoices of MSME sellers against large corporates, including government departments and […]
The evolution of a concept, from its inception to being prohibited, and ultimately establishing a regulatory framework to allow its practice – Anita Baid (finserv@vinodkothari.com) The concept of First Loss Default Guarantees (FLDGs) in the financial industry has experienced a remarkable journey, marked by its inception, subsequent prohibition, and eventually being on the verge of […]
RBI amends KYC norms to permit faceless KYC; beneficial owner of 10% or more to be subjected to KYC – Anita Baid, Vice President | anita@vinodkothari.com Recognising the increasing trend towards faceless lending, and the use of technology for customer due diligence, the RBI has made much-needed changes in the KYC process, permitting lenders to […]