Right from RBI’s (in)famous March 2018 Circular (‘Circular’) banning all operations by virtual currency exchanges (VCEs) to the Hon’ble Supreme Court’s verdict upholding the constitutionality of cryptocurrency and its exchanges, the debate over the adaptability of cryptos has led to a demographic split in India.
Read more →– Megha Mittal
On 14th January, 2022, the Reserve Bank of India (‘RBI’) notified the Registration of Factors (Reserve Bank) Regulations, 2022[1] (‘Registration Regulations’) laying down the manner of granting Certificate of Registration (‘CoR’) to companies which propose to do factoring business. Applicable with immediate effect, this may essentially seem like an undoing of the Factoring Regulation (Amendment) Act, 2021. One of the several objectives of the said Amendment was to allay a doubt, arising from the existing language of the Factoring Act, that entities either had to be principally into factoring business, or not do factoring at all. The RBI’s Regulations almost lead to the very result – either an entity has a Certificate of Registration (COR) as a factor, or it does not do factoring at all.
Read more →– Team Finserv | finserv@vinodkothari.com
RBI Notification dated December 14, 2021 – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12208&Mode=0
Our recent write-ups around the financial services sector – https://vinodkothari.com/category/financial-services/
We have attempted to collate all major regulatory amendments notified throughout the year, with our resources on the same. Below we present a regulatory round-up for the year 2021, be it for MCA, SEBI, RBI or the like, along with the links to our major articles/ FAQs on the same.
Our youtube video giving a quick view on the same can be accessed at – https://www.youtube.com/watch?v=WJbJx2jgK9A
This version: 4th December, 2021
Our Article explaining changes in NPA-SMA classification can be read here: https://vinodkothari.com/2021/11/npa-classification-norms-2/
Daily NPA determination, full payment to move back to standard among several measures
– Anita Baid, anita@vinodkothari.com
RBI has issued a notification on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances – Clarifications (‘RBI Circular’). The said RBI Circular dated November 12, 2021 is depicted to be a clarification issued by the RBI on the applicable prudential norms for all lending institutions. However, the same would have a major impact on the NPA classification by banks and NBFCs, specifically. The intention of the RBI is to clarify and harmonise certain aspects of the extant regulatory guidelines, making it applicable mutatis mutandis to all lending institutions Read more →
The RBI has consolidated the guidelines with respect to transfer of standard assets as well as stressed assets by regulated financial entities under a common regulation named Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 (“Directions”).
The Directions divided into five operative chapters- the first one specifying the scope and definitions, the second one laying down general conditions applicable on all loan transfers, the third one specifying the requirements in case of transfer of loans which are not in default, that is standard assets, the fourth one provides the additional requirement for transfer of stressed assets and the fifth chapter is on disclosure and reporting requirements.
Under the said Directions, the following entities are permitted as transferor and transferee to transfer loans-
We bring you this frequently asked questions on Transfer of Loans to assist you better understand the guidelines.
The file can be downloaded at this link: https://mailchi.mp/887939b2f979/qa32ogwo2t
We have also published FAQs on Securitisation of Standard Asset, the contents of FAQs can be accessed here and the file can be downloaded at this link.