Lenders Law

S. No. Policy Relevant Provision of Law Objective Remarks / Implementation Insights 1 Business Continuity Plan (BCP) & Disaster Recovery (DR) Policy Para 8(VIII), Master Direction- Information Technology Framework for the NBFC Sector Ensure uninterrupted business operations during disasters or cyberattacks. Ensure vendors follow recovery protocols; conduct regular mock drills and resilience testing. 2 Fair Practices Code Para 45, Scale-Based Regulations Promote transparency, ethical lending, and borrower protection. Use plain-language communications; disclose all charges upfront; avoid hidden clauses. 3 Grievance Redressal Policy Para 45.8.1, Scale-Based Regulations Provide...

S. No. Compliance Relevant Provision Relevant Form / Portal Timeline Remarks 1 Display following information: (a) name and contact details (Telephone/ Mobile nos. and email address) of Grievance Redressal Officer. (b) If complaint/ dispute is not redressed within 1 (One) month, customer may appeal to Officer-in-Charge of Regional Office of DNBS of RBI (complete contact details), under whose jurisdiction registered office of NBFC falls. Para 5.10.1. of Annex XIII of Scale Based Regulations - Ongoing Published at branches/places of business 2 Display following information: (a) name and contact details (Telephone/mobile number and E-mail ID) of Principal Nodal Officer. (b) details of complaint lodging portal of Ombudsman (https://cms.rbi.org.in) Para 18(3), Integrated Ombudsman Scheme, 2021 - ...

CAT-II vs CAT-III AIFs S. No. Criteria Category II AIF Category III AIF 1 Investment Limit Accredited investors can invest up to 50% of investable funds in an investee company. Limit is 20% of investable funds in an investee company. 2 Tenure Close-ended, minimum 3 years. Open-ended or close-ended. 3 Investment Focus Primarily unlisted securities and/or listed debt rated ‘A’ or below. Listed/unlisted securities, derivatives, other AIFs, structured products, commodities, CDS. 4 Leverage Not permitted. Permitted up to 2x NAV through derivatives/borrowing. 5 Valuation Independent valuer once a year. NAV disclosure quarterly (close-ended) / monthly (open-ended). ...

Gift under FEMA — Light Theme Type of gift From NRI to NRI From Resident to NRI From NRI to Resident From Resident to Resident Foreign currency – LRS limits of USD 250,000 per FY would apply to the donor. (i) Under Rupee Drawing Agreement method, no limit on personal inward remittances (business capped at INR 15 lakhs for each remittance). (ii) Under Money Transfer Service Scheme, max $2,500 per transfer, max 30 transfers per FY. Only cross-border personal remittances, such as family maintenance and remittances favouring foreign tourists visiting India allowed. NRIs can gift cash, but residents cannot hold more than $2,000 (or equivalent) at any time. ...

India’s digital transformation has streamlined the entire banking and financial services through Aadhaar, e-KYC, and video-based verification[1]. However, these systems have posed severe barriers for persons with disabilities, particularly acid attack survivors with facial/ eye disfigurements and individuals with blindness. Recognising this, the Hon’ble Supreme Court in Pragya Prasun & Ors. vs. Union of India  issued a landmark judgment on 30th April 2025, mandating inclusive reforms in KYC processes. In this regard, the Securities Exchange Board of India had earlier issued a circular no. SEBI/HO/MIRSD/SECFATF/P/CIR/2025/74 dated 23rd May, 2025, directing all its intermediaries to comply with the said Supreme Court Order. Now, on 14th August, 2025, the Reserve Bank of India has issued a notification no. RBI/2025-26/74 , wherein it has directed that all regulated entities shall mandatorily undertake appropriate measures in this regard.  Background:  Two writ petitions...

On July 29, 2025, RBI released "Investment in AIF Directions, 2025" —applicable to NBFCs and other Regulated Entities (REs). A closer legal look reveals a strong regulatory intent: curb indirect evergreening and tighten capital discipline. Key highlights: 1️⃣ 10% Cap per RE & 20% Collective Cap across all REs in an AIF scheme. 2️⃣ If an RE contributes >5% to an AIF that makes non-equity investments in RE’s own debtor company, RE must make 100% provision to the extent of its proportionate indirect exposure. 3️⃣ If an RE subscribes to subordinated units of an AIF, the investment must be entirely deducted from capital funds (Tier-1 & Tier-2). 🔍 Legal and compliance teams at NBFCs must now revisit: - Their AIF investment approval matrices; - Existing exposures vis-à-vis related-party/indirect lending; - Tier-1 capital impact under the revised approach. This is not just a compliance update — it’s a strategic recalibration of how structured exposure via AIFs is view...

When ChatGPT writes your caption… who owns it?  That’s just one of the questions I tackled at LexDita 2025 while speaking on AI-generated content & IP.  From memes to music to machine-written code — the lines around ownership, originality, and liability are getting blurry (and legally messy).   This was more than a welcome address — it was a deep dive into a subject I’ve been reflecting on for a while.  Here’s the full talk if you're curious about where the law may be headed-

Background: Regulated entities (REs) perform various roles in co-lending transactions from sourcing activities to extension of loan facilities to borrowers, and RBI has issued separate guidelines covering co-lending by banks with NBFCs to priority sector, guidelines on outsourcing of financial services, however, the regulatory frameworks do not cover all possible categories of co-lending arrangements (CLA).   On 9 th April, 2025, the Reserve Bank of India has issued comprehensive draft framework [1] to cover all market trends related to different types of CLA entered by financial entities. The said directions stipulate regulatory norms and guidance for REs, and also seek to address prudential issues.   Post receipt of comments from industry experts, financial sector, legal professionals, academicians, etc, RBI has proposed to issue directions that will govern co-lending arrangements by REs, which shall come into force from date of its publication.   Appli...