Police in India can direct banks to freeze or seize an account if, during investigation, they develop a reasonable suspicion that the account is linked to a crime, but this power is not unlimited and is subject to statutory safeguards and judicial review. The Supreme Court has clarified that a bank account is “property” for…
The Reserve Bank of India (RBI)is actively advancing efforts to interlink the **Unified Payments Interface (UPI) with fast payment systems across global jurisdictions to enhance the efficiency of cross-border payments. These initiatives align with the G20 Roadmap for improving cross-border payments, which emphasizes making international transfers cheaper, faster, more transparent, and more accessible. As part…
A common question arises whether an unregistered partnership firm can be made an accused under Section 141 of the Negotiable Instruments Act, 1881 (NI Act), and whether the firm itself must be arraigned as an accused along with its partners for cheque bounce offences under Section 138. Historically, ambiguity persisted due to Section 69 of…
Quick summary An NRE account is a rupee account for NRIs/OCIs to park overseas earnings in India with full repatriation and tax‑free interest while they remain non‑resident under FEMA, subject to specific opening, operation, and conversion rules on change in residency status. What is an NRE account Purpose and use-cases Eligibility Key features Tax…
The PSB Alliance, a joint initiative of all 12 Public Sector Banks (PSBs) in India, is set to launch a new digital platform in January 2026 to simplify credit access for Micro, Small, and Medium Enterprises (MSMEs). The upcoming platform will create a unified digital ecosystem connecting small businesses, fintechs, and partner organizations with PSBs,…
A wide range of civil actions in India are time-barred if not initiated within the specific periods prescribed by the Limitation Act, 1963; notably, execution of most civil decrees must be filed within 12 years from when the decree becomes enforceable, while perpetual injunction decrees have no limitation for enforcement. For banking and recovery practitioners,…
The Limitation Act, 1963 prescribes specific time limits within which legal actions must be initiated. For banks and financial institutions, understanding these timelines is crucial for debt recovery, enforcement of securities, filing suits, and responding to customer claims. Failure to act within the prescribed limitation period may result in the claim becoming time-barred, rendering it…
NRO (Non-Resident Ordinary) deposits are rupee-denominated accounts that allow NRIs/OCIs to hold and manage income accruing in India (such as rent, dividends, pension, interest), with repatriation of current income permitted and repatriation of principal subject to limits and documentation. These deposits can be opened as savings/current/term deposits, are subject to Indian taxation, and follow FEMA/RBI…
Foreign Currency Non-Resident [Bank] deposits, commonly called FCNR(B) deposits, are term deposits maintained in designated foreign currencies with Indian banks by eligible non-residents, offering full repatriability of principal and interest and insulation from INR exchange risk during the tenor. These deposits can generally be opened for tenors from 1 to 5 years, with interest payment/compounding…
Closing a Foreign Currency Non-Resident [Bank] [FCNR(B)] deposit in India is governed by RBI’s FCNR(B) Scheme and bank-specific policies, with distinct rules for premature closure, closure at maturity, repatriation, and treatment upon return to India for permanent settlement. The key principles are: premature closure is permitted with penalties and, if closed before one year, no…
