Banking & Finance

The Reserve Bank of India announced the early closure of its special Foreign Currency Non-Resident (Banks) deposit swap window on August 31, 2026, advancing the deadline by a full month from the originally announced September 30, 2026 cutoff. The facility, which permitted banks to raise FCNR(B) deposits of 3 to 5 year tenors from NRI depositors and swap the resulting foreign currency exposure with the RBI at concessional rates, attracted $52.3 billion in deposits by August 13

The Reserve Bank of India has issued the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 (Notification No. FEMA 3(R)(5)/2026-RB, dated 9 February 2026), effective from 16 February 2026. This amendment substantially revises the framework governing External Commercial Borrowings (ECBs), consolidating eligibility, end-use, maturity, cost, security, refinancing, conversion, and reporting requirements into a more structured regime. The chang

The Securities and Exchange Board of India (SEBI) has extended the implementation deadline for its Exchange Traded Fund (ETF) trading norms circular from September 1, 2026 to September 7, 2026. The extension was notified through Circular No. HO/47/11/11(1)2026-MRD-POD3/I/19839/2026 dated August 28, 2026, following feedback received from stock exchanges regarding operational readiness. Background: The June 15, 2026 ETF Norms Circular SEBI issued its original circular on June 1

Background and Overview The Reserve Bank of India (RBI), on July 3, 2026, imposed monetary penalties totalling Rs 66.7 lakh on Bank of Baroda and GIC Housing Finance Ltd for non-compliance with regulatory norms relating to the Fair Practices Code for Lenders and Know Your Customer (KYC) guidelines. The penalty on Bank of Baroda was Rs 63.6 lakh, while GIC Housing Finance was penalised Rs 3.1 lakh. The penalties were imposed following a statutory inspection conducted by the RB

Cross-border borrowing and lending is a critical component of India's foreign exchange regulatory framework. For companies seeking to raise capital from overseas sources, External Commercial Borrowings (ECBs) offer a viable and often cost-effective alternative to domestic financing. However, these transactions are governed by a comprehensive set of regulations under the Foreign Exchange Management Act, 1999 (FEMA). The Reserve Bank of India (RBI) recently introduced significa

The Reserve Bank of India (RBI) Fair Practices Code (FPC) establishes a comprehensive framework for ethical lending practices across banks and non-banking financial companies (NBFCs) in India. Originally introduced through the RBI circular dated May 5, 2003, the FPC has undergone significant updates to address evolving challenges in the lending landscape. For lending institutions, compliance with the FPC is not merely a regulatory obligation; it is a cornerstone of responsibl

Introduction The Reserve Bank of India (RBI) has issued a set of Governance Amendment Directions dated July 14, 2026, fundamentally restructuring the framework governing matters that banks must place before their Boards of Directors. Effective from October 1, 2026, these Directions apply across Commercial Banks, Small Finance Banks (SFBs), Payments Banks, and Local Area Banks (LABs). The amendments carry the statutory authority of Section 35A of the Banking Regulation Act, 19

On August 19, 2026, the Securities and Exchange Board of India (SEBI) passed an ex-parte interim order against two entities, Copthall Mauritius Investment Limited (a foreign portfolio investor and unit of JPMorgan Chase & Co.) and Mansi Share and Stock Broking Private Limited, for prima facie manipulation of the Sensex closing price during the Closing Auction Session (CAS) on August 13, 2026. The regulator found that both entities had placed large, aggressive, and strategical

The Reserve Bank of India (RBI) has reinstated the Default Loss Guarantee (DLG) framework for Non-Banking Financial Companies (NBFCs), effectively reversing restrictions introduced under the RBI Digital Lending Directions, 2025 that had required lenders to exclude such guarantees from loss estimates on loans originated through fintech partners. The amendment, issued through the RBI (Non-Banking Financial Companies, Income Recognition, Asset Classification and Provisioning) Am

The Securities and Exchange Board of India (SEBI) has reaffirmed a penalty of Rs 5 lakh on Mohit Gupta, proprietor of Safe Trading, for operating as an unregistered investment adviser in violation of the SEBI (Investment Advisers) Regulations, 2013. The order, which follows a reconsideration directed by the Securities Appellate Tribunal (SAT), retains the penalty under Section 15HA of the SEBI Act, 1992, and forms part of the regulator's intensifying crackdown on individuals

On April 29, 2026, the Reserve Bank of India issued the RBI (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, effective from July 1, 2026. The Amendment Directions introduce a significant new concept in NBFC regulation: the 'Unregistered Type I NBFC,' a category of non-banking financial company that is exempt from the mandatory registration requirement under Section 45-IA of the Reserve Bank of In

Introduction Payment Aggregators (PAs) play a central role in India's digital payments ecosystem by enabling merchants to accept online, physical, and cross-border payments without establishing direct relationships with banks and payment networks. Under the Payment and Settlement Systems Act 2007 (PSS Act), no entity other than the Reserve Bank of India may operate a payment system without authorisation. The RBI first issued comprehensive PA guidelines in March 2020, followed

Foreign companies with subsidiaries in India frequently need to repatriate dividends and profits to their home country. Under the Foreign Exchange Management Act (FEMA), 1999, dividends are classified as current account transactions, making them freely repatriable without prior Reserve Bank of India (RBI) approval, provided all applicable taxes have been paid and regulatory procedures are followed. However, the process involves multiple compliance steps across FEMA, the Incom

The Reserve Bank of India (RBI) has issued a consolidated circular on Special Rupee Vostro Accounts (SRVAs), rationalizing instructions from five earlier circulars issued between July 2022 and October 2025. This consolidated directive streamlines the regulatory framework for international trade settlement in Indian Rupees (INR), providing authorized dealer (AD) banks and their overseas counterparts with a single reference point for SRVA operations and cross-border trade settl

Introduction The Reserve Bank of India has taken a significant step toward simplifying the regulatory process for institutional investors seeking to acquire meaningful stakes in Indian banks. On July 14, 2026, the RBI published the draft "Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026," proposing a standing approval mechanism that would spare qualifying institutional investors the need to seek fresh clearance every time t