Government Notifies insolvency law for financial service providers

In the backdrop of instances of various FSPs facing problems, the Corporate Ministry, Government of India on Friday (November 15, 2019) notified rules under the insolvency law to deal with the resolution of financial service providers, excluding banks. According to the statement of Corporate Ministry, the new rule “Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings…

RBI raises the limit for borrowing from NBFC-MFIs

Effective from November 08, 2019 the eligibility criteria for classification under ‘Qualifying Assets’ for NBFC-MFIs are revised. The Reserve Bank of India (RBI) in it’s circular dated November 08, 2019 increased the household income limits for borrowers of NBFC-MFIs from the current level of ₹1,00,000 for rural areas and ₹1,60,000 for urban/semi-urban areas to ₹1,25,000…

RBI announces On-tap Authorisation of Payment Systems

In order to benefit from diversification of risk as also to encourage innovation and competition, Reserve Bank on 15th October 2019 announced to offer on-tap authorisation for the following entities:   Bharat Bill Payment Operating Unit (BBPOU).  Trade Receivables Discounting System (TReDS).  White Label ATMs (WLAs). The entities desirous to function / operate / provide platforms…

Whistle-Blower and Whistle-blowing law in India explained

(This post elucidates the meaning of Whistle-Blower and Whistleblowing Laws in India) The whistle-blower is a complainant who wishes to complain or disclose on any allegation of corruption or of miss-use of office by any employee of the Central Government or of any corporation established under any Central Act, government companies, societies or local authorities…

Direct Benefit Transfer (DBT) Scheme – Seeding of Aadhaar in Bank Accounts

On the subject of the use of Aadhaar to facilitate delivery of social welfare benefits by direct credit to the bank accounts, Reserve Bank of India vide its circular RBI/2015-16/289/FIDD.CO.LBS.BC. No.17/02.01.001/2015-16 dated January 14, 2016 had clarified that the use of Aadhaar Card and seeding of bank accounts with Aadhaar numbers is purely voluntary and…