Lenders Law

While RBI returns often receive the greatest attention, regulatory inspections increasingly focus on whether an NBFC has adopted, implemented and periodically reviewed the policies mandated under various Master Directions and circulars. The following table serves as a practical reference for NBFCs. Sl. No. Particulars Approved / Reviewed By Frequency Key Compliance Points 1 Asset Liability Management (ALM) Policy Board / Risk Management Committee Annual review with periodic ALCO monitoring Monitor maturity mismatches, liquidity gaps and funding profile 2 Business Continuity Plan (BCP) Board Annual Conduct BCP testing and maintain disaster recovery arrangements 3 Business Model Framework Board Annual Review strategic assumptions, product mix and business risks ...

Demand and Call Loans have traditionally been viewed as flexible lending instruments, allowing lenders to recall the facility at any time. However, unrestricted discretion in recalling such loans or structuring repayment terms can expose borrowers to uncertainty and increase operational as well as governance risks. Recognising these concerns, the Reserve Bank of India has prescribed specific regulatory expectations governing the sanction, review and administration of Demand and Call Loans. While these requirements may appear straightforward, they are often overlooked during policy formulation and loan documentation. This article discusses the key compliance requirements applicable to NBFCs and the practical steps necessary to ensure regulatory compliance. What is a Demand and Call Loan? A Demand and Call Loan is a credit facility that is repayable on demand or after a notice period specified by the lender. Unlike term loans, these facilities generally do not have a fixed repayment ...

Minority shareholder disputes are rarely factored into credit underwriting. In practice, they surface precisely when lenders least want friction—during enforcement, restructurings, schemes of arrangement or exits. When they do, they slow timelines, destabilise valuations and weaken recoveries. This write up examines minority shareholder rights not as a corporate governance abstraction, but as a transaction and enforcement risk. Viewed through a lender and investor lens, minority claims often operate as delay levers—capable of stalling deals, reopening valuations and complicating otherwise executable resolutions. In distressed Indian companies, minority risk is rarely fatal—but it is frequently expensive. While minority shareholders often find themselves in a structurally weak position within Indian companies. However, for lenders, investors and in-house legal teams, minority shareholder disputes are no longer a purely equity-side issue—they directly impact enforcement timelines, transa...

 -  From Policy Intent to Enforceable Conduct Standards On 11 February 2026, the Reserve Bank of India released the   Draft Non-Banking Financial Companies – Responsible Business Conduct (Amendment) Directions, 2026  (“ Amendment Directions ”), effective from 1 July, 2026 . These amendments form part of the RBI’s broader effort to recalibrate conduct regulation for regulated entities, particularly in areas impacting customer protection, fairness and governance. Notably, the Amendment Directions flow directly from the policy intent articulated in  RBI’s Statement on Developmental and Regulatory Policies , released alongside the February 2026 Monetary Policy. The Amendment Directions therefore represent a deliberate regulatory progression rather than an isolated compliance update. Why Responsible Business Conduct Matters? The regulatory emphasis on conduct is rooted in persistent customer-level issues observed across the NBFC sector. Common themes emerging f...