Entries by Staff

RBI Clarifies Uniform Asset Classification Under Co-Lending Confined to the Co-Lent Exposure Only

June 8, 2026 /0 Comments/in /by

Simrat Singh | finserv@vinodkothari.com Background The Co-Lending Arrangements Directions, 2025 (now subsumed within Para B of the RBI (Non-Banking Financial Companies — Transfer and Distribution of Credit Risk) Directions, 2025) introduced a requirement for uniform borrower-level asset classification across co-lending partners. Paragraph 124 of the Directions provides: “NBFCs shall apply a borrower-level asset classification for […]

RBI attempts to woo fleeing foreign investors

June 8, 2026 /0 Comments/in /by

– Vinita Nair and Saloni Khant | corplaw@vinodkothari.com In light of the outflow of $13.7 billion by foreign institutional investors in less than 2 months and the consequent fall in rupee, the RBI governor has issued a press release dated June 5, 2026 introducing various measures to pull in foreign capital such as slashing tax […]

SOP for FDI approval rationalised for Border- Country Investment

June 6, 2026 /0 Comments/in /by

– Saloni Khant, Senior Executive | corplaw@vinodkothari.com – Prescribes 60 days approval timeline for critical sectors, format for reporting LBC investments and more After liberalising the receipt of FDI from countries sharing land-border with India (LBC Amendment) [read our article here], the DPIIT issued a revised SOP for applications seeking government approval to receive FDI […]

Disaster, Distress and Resolution: Decoding RBI’s NBFC Relief Framework

June 3, 2026 /0 Comments/in /by

-Jeel Ranavat, Assistant Manager (jeel@vinodkothari.com) Overview A natural calamity does not just damage property or disrupt livelihoods — it can instantly push otherwise disciplined borrowers into financial stress. Loan repayments become difficult not because borrowers are unwilling to pay, but because businesses halt, incomes disappear, and economic activity comes to a standstill. Recognising this reality, […]

RBI Proposes Uniform Recovery Norms Across All Lenders

June 1, 2026 /0 Comments/in /by

Revised draft enables device locking facility and removes the restriction taking legal action as first  resort Tejasvi Thakkar, Simrat Singh and Jeel Ranavat | finserv@vinodkothari.com Introduction Pursuant to the RBI’s stated intent in theStatement on Developmental and Regulatory Policies to harmonise the conduct of Regulated Entities in relation to loan recovery, comprehensive draft instructions were […]

CSR through ZCZP Bonds: MCA unveils new route for social finance

May 30, 2026 /0 Comments/in , , , , , /by

– Payal Agarwal and Sourish Kundu | corplaw@vinodkothari.com Since its inception in 2019, proposals were in discussion for bringing an alignment between the new brought noble concept of Social Stock Exchanges (“SSEs”) with the existing, well-recognised statutorily-laid social obligations on companies, viz., Corporate Social Responsibility (CSR) under the Companies Act. However, the concept of SSE […]

RBI’s Pillar 3 Proposes Disclosure of Liquidity Risks and Measures 

May 22, 2026 /0 Comments/in /by

Move from Narrative Disclosures to Structured Transparency – Payal Agarwal, Partner | payal@vinodkothari.com  The draft Capital Adequacy Amendment Directions of RBI propose changes to the existing Directions in relation to the Pillar 3 disclosure requirements (Market Discipline). The amendments are proposed to be made towards better alignment of the regulatory disclosure framework with the Basel […]