Entries by Staff

RBEye: Red-eyed RBI wants lenders to revisit interest rate policies

October 30, 2024 /0 Comments/in , , /by

-Vinod Kothari (vinod@vinodkothari.com) Against the backdrop the action against 4 specific lender, RBI now expects all NBFCs to appraise their boards of the action taken by the regulator, and in specific terms, have the interest rate policy examined with respect to, at least, the following, in “unambiguous terms”: Usually, it is believed that if a […]

Recent Updates to HFC Directions: What you need to know

October 22, 2024 /0 Comments/in , , , /by

-Chirag Agarwal | chirag@vinodkothari.com On October 10, 2024, RBI updated the Master Direction – Non-Banking Financial Company – Housing Finance (‘HFC Directions’) applicable to HFCs. The HFC Directions were updated to consolidate various circulars that have been issued since its last update on March 21, 2024. A significant change in this edition is the introduction […]

Resources on KYC

October 7, 2024 /0 Comments/in , /by

Know Your Customer (KYC) is the gateway to trust in today’s fast-paced financial world. It’s not just a regulatory requirement—it’s a shield against fraud, money laundering, and illicit activities that could compromise the integrity of businesses and the broader economy. By ensuring organizations truly understand the identities of their customers, KYC fosters a safer financial […]

Co-Lending and GST: Does the relationship between co-lenders constitute a supply that may be subject to GST?

September 27, 2024 /0 Comments/in , , , , /by

Team Finserv (finserv@vinodkothari.com) Introduction  Banks and Non Banking Financial Companies (‘NBFCs’) have been receiving notices from statutory authorities stating the occurrence of evasion of goods and services tax (‘GST’) in respect of co-lending arrangements. At present, the GST laws do not address the implications of GST on co-lending transactions. In response to the investigations carried […]

Navigating Unfair Contracts: Understanding Borrower Rights and Lender Obligations under the Consumer Protection Act 

September 18, 2024 /0 Comments/in , , , , /by

– Archisman Bhattacharjee & Aditya Iyer  | finserv@vinodkothari.com Introduction The trust and fairness in a lender-borrower relationship is one of the most fundamental drivers of financial regulation, and ensuring this trust and fairness in lender-borrower relationships is crucial for the growth and stability of the financial sector.  NBFCs doing lending business are likely very conversant […]