Banking & Finance

From July 1, 2026, the Reserve Bank of India is implementing a significant reclassification of Non-Banking Financial Companies (NBFCs) into two broad categories: Type I NBFCs (entities that do not access public funds and do not have a customer interface) and Type II NBFCs (entities that raise funds from the public, accept deposits where permitted, or interact directly with retail customers). This reclassification simplifies the regulatory architecture while introducing propor

The Securities and Exchange Board of India (SEBI) has introduced a revised Annual Activity Report (AAR) framework requiring all registered market intermediaries to submit comprehensive activity reports for the financial year 2025-26 by 31 May 2026. This is the first reporting cycle under the new framework, which mandates detailed disclosure of business activities, compliance status, grievance redressal metrics, investor education initiatives, and risk management practices. Th

The Securities and Exchange Board of India has revised the stress testing and Settlement Guarantee Fund (SGF) coverage norms applicable to clearing corporations operating in the commodity derivatives segment. The revised framework, effective from early 2026, reduces the Z-score used for historical stress testing from 10 to 5, revises the coverage requirement to account for the simultaneous default of the top three clearing members (the Cover 3 standard), and provides regulato

The Reserve Bank of India has introduced significant changes to the reporting framework for the Liberalised Remittance Scheme (LRS), effective from 1 January 2026. Under the revised framework, Authorised Dealer Category-II (AD Cat-II) banks and full-fledged money changers (FFMCs) are now required to file LRS transaction details directly on the Centralised Information Management System (CIMS), the RBI's next-generation data reporting platform that replaces the older XBRL-based

The Reserve Bank of India has introduced two regulatory changes in 2026 that directly affect individual bank customers across the country. First, Video-based Customer Identification Process (V-CIP) has been pushed as a standard onboarding option, enabling customers to complete their Know Your Customer (KYC) requirements through a live video call without visiting a bank branch. Second, the RBI has tightened the rules on dormant and inactive accounts, with banks now empowered t

India International Disputes Week 2026, held from 7 to 11 March 2026 in Chandigarh, marked a significant milestone in India's effort to position itself as a credible destination for international commercial arbitration. The centrepiece of the event was the formal launch of the Chandigarh International Arbitration Centre (CIAC), adding a new institutional arbitration platform to India's growing dispute resolution infrastructure. The event brought together judges, arbitration p

The Securities and Exchange Board of India amended the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 with effect from 16 March 2026. The ICDR Amendment Regulations 2026 address two critical areas of the IPO framework: the enforceability of lock-in provisions for pledged pre-issue shares, and the integration of a draft abridged prospectus into the IPO documentation process. These changes affect issuers, merchant bankers, depositories, and retail investo

The Securities and Exchange Board of India notified the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2026 on 20 January 2026. These amendments, which came into force on the date of their publication in the Official Gazette, introduce significant changes to disclosure norms, board meeting requirements, material subsidiary definitions, and the regulatory treatment of High Value Debt Listed Entities (HVDLEs). For listed companies, compliance of

The Reserve Bank of India issued the Commercial Banks Credit Facilities Amendment Directions, 2026 on February 13, 2026, comprehensively revising the regulatory framework governing bank lending for acquisitions, loans against securities, and credit facilities to capital market intermediaries. The directions came into force on April 1, 2026. The amendments introduce a new Chapter XIII A dedicated to credit facilities for capital market intermediaries (CMIs), covering stock bro

Indian banks have written off lakhs of crores in non-performing assets over the past decade, a fact that periodically generates public outrage when presented alongside statistics about agricultural debt or small borrower distress. However, the legal distinction between a write-off and a waiver is fundamental, and misunderstanding it leads to confusion about what banks actually do when they 'write off' a loan. Under RBI guidelines, a write-off is an accounting adjustment that

The Securities and Exchange Board of India (SEBI) has significantly expanded its Online Dispute Resolution (ODR) framework for the Indian securities market. Through the SMART ODR portal, investors can now resolve disputes with brokers, depository participants, and other market intermediaries through a structured two-tier process of conciliation and arbitration, all conducted online. The 2026 amendments bring depositories within the ODR ambit, introduce direct arbitration for

The Reserve Bank of India has issued comprehensive Asset Liability Management (ALM) Directions for 2026 applicable to all commercial banks in India. These directions establish a detailed framework for measuring, managing, and reporting interest rate risk, liquidity risk, and other balance sheet risks. The ALM framework is central to prudent banking practice and ensures that banks maintain sufficient liquidity buffers, manage maturity mismatches, and stress test their balance

The Reserve Bank of India has amended its Directions on Concentration of Credit for Non-Banking Financial Companies (NBFCs) for 2026, establishing stricter exposure limits and a comprehensive framework for managing concentration risk. These amended directions apply to all registered NBFCs and require careful monitoring of exposure to single borrowers, related parties, groups, and sectors. The RBI's focus on concentration risk reflects the banking regulator's concern that exce

On April 24, 2026, the Supreme Court of India delivered a significant judgment in Chaitanya Bahuuddeshiya Shikshan Prasarak Mandal v. Auxilo Finserve Pvt. Ltd. (2026 INSC 408) that has profound implications for educational institutions facing financial distress. A bench comprising Justices Dipankar Datta and Satish Chandra Sharma ordered the closure of Chaitanya Public School in Kolhapur, Maharashtra from May 1, 2026, for defaulting on a debt of Rs 5.06 crore. This judgment u

Effective April 1, 2026, all Alternative Investment Fund (AIF) units must be held in dematerialised form. This directive from the Securities and Exchange Board of India (SEBI) represents a significant shift in how fund units are issued, held, and transferred. This article explains the regulatory requirement, its implications for fund managers and investors, and the practical compliance steps required. What is Dematerialisation? Dematerialisation is the process of converting