Lenders Law

Bitcoin lending has evolved from informal peer-to-peer arrangements into structured credit products , often routed through offshore special purpose vehicles (SPVs) and regulated intermediaries. At its core, bitcoin lending allows a borrower to access liquidity either in fiat or stablecoins , against a promise to repay with interest—sometimes with bitcoin involved as collateral, sometimes as the loan asset itself. For Indian lenders, fintechs, and compliance teams, the key question is no longer whether bitcoin lending exists, but how the risk is structured , where the enforceability sits , and whether it resembles credit or custody under Indian law. Two Distinct Models: A.  Bitcoin-Backed Loans (Collateralised Model): In a bitcoin-backed loan: The borrower pledges bitcoin as collateral; The lender disburses fiat currency or stablecoins; Bitcoin is typically custodied, escrowed, or controlled via smart contracts; Loan-to-Value (LTV) ratios, margin calls, and liquid...

Prize-Linked Savings Accounts (PLS accounts), also known as  lottery-linked deposit accounts , are an innovative financial product designed to encourage savings by combining the  security of a traditional savings account  with the  excitement of a lottery-style reward . Instead of offering higher interest rates, these accounts provide depositors with a chance to win cash prizes—without risking their principal. Globally, PLS schemes have been used as a tool for  financial inclusion , particularly to attract individuals who may otherwise remain outside the formal banking system. However, their compatibility with India’s regulatory framework raises important legal and policy questions. What Are Prize-Linked Savings Accounts? A prize-linked savings account offers depositors an opportunity to participate in periodic prize draws based on the amount they save. The core idea is simple: Depositors place money into a savings account. Each qualifying deposit ...

The Reserve Bank of India (RBI) has proposed the Master Direction – Internal Ombudsman for Regulated Entities, 2025 , to replace the 2023 framework . Issued under Section 35A of the Banking Regulation Act, 1949 and allied statutes, the new draft seeks to strengthen internal grievance redressal mechanisms and ensure speedy, meaningful resolution of customer complaints through a structured, independent review within each regulated entity (RE). This article compares the new draft with the 2023 Master Direction and highlights key changes. Topic Master Direction 2023 Draft Master Direction 2025 Appointment — IO eligibility IO: retired/serving GM-equivalent; min. 7 years relevant experience; not over 70; must not have been employed by the RE or related parties. Adds if serving, must relinquish prior post. Explicit permission ...

The Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 have been the governing framework for foreign entities establishing Branch Offices (BOs), Liaison Offices (LOs), Project Offices (POs), or other business entities in India. Now, the Reserve Bank of India, on 3rd October, 2025, published  Draft Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025  proposing several clarifications, procedural updates, and operational guidelines to streamline and modernize the framework. The 2025 draft keeps the core eligibility and operational principles of FEMA 2016 but streamlines processes, strengthens reporting and compliance, formalizes closure and appeal mechanisms, and assigns explicit responsibilities to designated banks. It is designed to make foreign office establishment in India more transparent and accountable while retaining flexi...

Provision ECB 2018 Draft ECB 2025 Amendment 1. Eligible borrowers A person resident in India (other than an individual) incorporated, established or registered under a Central Act or State Act may raise ECB, subject to the condition that it is permitted to borrow in terms of the applicable laws. Clarifies- (1) An eligible borrower under a restructuring scheme or CIRP may raise ECB only if plan permits. (2) An eligible borrower under pending investigation/adjudication/appeal may raise ECB, must disclose to designated AD, which informs agencies. 2. Recognised lenders An eligible borrower may raise ECB from: - A person resident outside India; - A branch outside India or in IFSC of entity whose lending business is regulated by RBI. No major change; includes branches in IFSC and regulated lenders 3. Cur...

In a significant move towards regulatory simplification, the Reserve Bank of India (RBI) has consolidated the existing universe of regulatory instructions issued up to October 9, 2025 into 238 Draft Master Directions . This consolidation spans 11 types of regulated entities , including banks, NBFCs, payment system operators, and others. Importantly, the consolidation also incorporates Scale Based Regulations (SBR) for NBFCs , reflecting the RBI’s risk-based and size-oriented approach to supervision. As part of this initiative, approximately 9,000 circulars , including Master Circulars and Master Directions currently administered by the Department of Regulation, are proposed to be repealed . This is intended to reduce duplication, simplify compliance, and provide a more coherent regulatory framework for all stakeholders. Key Highlights 238 Draft Master Directions now consolidate prior instructions across 11 entity types. Scale Based Regulations (SBR) for NBFCs included to...

  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...