Charge creation means the establishment of the lender’s right over specified assets of the borrower in order to recover principal and interest in default from the borrower. The charge can be created against the same assets by more than one lender. The lender in whose favour charge is first created is called the holder of…
Pari-passu is a Latin phrase used in contract law that means “equal footing”. Thus pari passu charge means, having equivalent charge/ rights or say charge-holders have equal rights over the asset on which pari-passu charge is created. Most of the large borrowers are financed by multiple banks in a consortium or under a Joint Lending…
The Fixed charge is a charge on a defined property offered to the lender as security which should be clearly identifiable. During the existence of fixed charge, the borrower cannot change either the nature/identity of the property or otherwise dispose off the property. The securities commonly covered under fixed charge are a mortgage of immovable properties…
Yes, lender bank or Financial Institution (FI) can also file application form for registration of charge with the Registrar of Companies. However, it is the responsibility of the company to register the each charge against its assets. If the borrower company fails to file form for registration of charge with ROC, the lender bank or…
The Payment and Settlement Systems (PSS) Act, 2007 is an Indian law enacted to regulate and supervise payment systems in the country. It designates the **Reserve Bank of India (RBI)** as the primary regulatory authority and provides the legal framework for operating payment systems. The Act ensures smooth functioning, settlement finality, and mandatory authorization for…
The Payment and Settlement Systems (PSS) Act, 2007 empowers the Reserve Bank of India (RBI) to regulate and supervise payment and settlement systems in India. To exercise these powers, the RBI operates through its designated body, the Payments Regulatory Board (PRB). These powers enable the RBI to authorize operators, prescribe standards, conduct inspections, impose penalties,…
The Payment and Settlement Systems (PSS) Act, 2007 is India’s primary legislation governing payment systems. It designates the Reserve Bank of India (RBI) as the central authority for authorizing, regulating, and supervising these systems. One of the critical areas covered under this Act is settlement and netting, specifically laid down in Section 23, which provides…
Under the Payment and Settlement Systems Act, 2007, the Reserve Bank of India (RBI) is empowered with comprehensive regulation and supervision responsibilities over payment systems in India. Key points of RBI’s regulation and supervision include: Together, these powers and supervisory mechanisms enable RBI to maintain a safe, secure, efficient, and authorized payment ecosystem in India…
The ‘Payment and Settlement Systems Act, 2007 (PSS Act)’ lays down the legal foundation for regulating and supervising payment systems in India. Two of its most crucial provisions relate to the Designated Authority and Authorization, which define who governs payment systems and how entities are permitted to operate. Designated Authority * Reserve Bank of India…
The Goods and Services Tax (GST) Council has rolled out one of the biggest tax reforms since GST’s launch. On September 3, 2025, the Council announced a simplified two-rate GST structure to replace the existing four slabs. Starting September 22, 2025, GST will primarily operate on just two slabs — 5% and 18%, with a…
