Timothy Lopes, Manager | tim@vinodkothari.com In a landmark judgment dated 10th May, 2022, the Supreme Court in Nedumpilli Finance Company Limited vs State of Kerala & ors[1] held that the money lending laws will not apply in the case of NBFCs regulated by RBI. This ends an age-old quarrel between the States and NBFCs.
Past editions: https://vinodkothari.com/sangraha/
Vinita Nair | corplaw@vinodkothari.com Provisions of Law According to Section 2(31) of the Companies Act, 2013 ‘Deposit’ includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of […]
Financial Services Division | (finserv@vinodkothari.com) RBI had introduced the Scale Based Regulatory Framework: A Revised Regulatory Framework for NBFCs vide a circular dated October 22, 2021. Para 3.2.3 (h) of the circular dealt with ‘Compensation Guidelines’ which required that NBFCs shall put in place a Board approved compensation policy in order to address issues arising out of […]
RBI Directions on Credit Cards and Co-branded Credit Cards issued by NBFCs Aanchal Kaur Nagpal | Assistant Manager (finserv@vinodkothari.com) With the objective to provide general and conduct regulations relating to credit, debit and co-branded cards to banks and NBFCs, RBI, on April 21, 2022, has issued the Reserve Bank of India (Credit Card and Debit […]
Manner of computation of CET-1 for NBFCs prescribed by RBI – Qasim Saif | finserv@vinodkothari.com Addressing risk faced by NBFCs and enhancing their capacity to absorb such risk has been a key point of consideration under the Scale Based Regulations (SBR) for NBFCs. SBR also intends to curb regulatory arbitrage available to very large NBFCs […]
In pursuance of the Scale Based Regulatory Framework -Anita Baid | Vice- President and Aanchal Kaur Nagpal | Assistant Manager The Scale Based Regulatory Framework, introduced by the Reserve Bank of India (‘RBI’), among several other things, proposed to regulate loans extended by NBFCs to their directors, senior officers and relatives thereof. In this regard, […]