Lenders Law

  Introduction: Why This Amendment Matters In the continuously evolving credit and regulatory landscape, timeliness and accuracy of credit data have become critical to risk assessment, early detection of stress, and better decision-making by lenders, regulators, and markets. The Reserve Bank of India’s draft “Credit Information Reporting (1st Amendment) Directions, 2025” seeks to strengthen the frequency and nature of data flows between regulated entities (banks, NBFCs, etc.) and Credit Information Companies (CICs). The key proposal: a transition to weekly submission of credit information to CICs. This shift is aimed at enhancing the granularity, freshness, and responsiveness of credit intelligence across the financial system. Key Proposal: Weekly Credit Information Submissions At the heart of the draft amendment is the proposal that lenders move from their current bi- monthly reporting of borrower credit data to weekly submissions . This change means that new loans, rep...

  In the past year, the Reserve Bank of India (RBI) has imposed more than 100 monetary penalties on banks, NBFCs, fintechs, and cooperative institutions. These penalties span a wide range of compliance failures—from customer due diligence lapses to weak cyber security, and from outsourcing gaps to violations of lending norms. While the penalties differ in size, they all point to a common theme: regulatory compliance is non-negotiable . Here’s a breakdown of the most frequent reasons behind these actions. Category Typical Lapses Illustrative Orders Key Directions Change in management Failed to take prior written permission of the RBI before appointing a director Grewal Brothers Finance Company Private Limited (15 May, 2025) Mahindra Rural Housing Finance Limited (28 March, 2025) Habitat Micro Build Ind...

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 12 of Reserve Bank of India (Non-Banking Financial Companies– Credit Facilities) Directions, 2025 - 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 ...