Limitation Periods for Banking Documents
Limitation periods for legal documents in banking are governed by the Limitation Act, 1963, primarily under Articles 31-43 for negotiable instruments and related contracts. These periods start from specific events like due dates or demands, with extensions possible via acknowledgments or payments under Section 18-19. Banks must track these to enforce recovery suits timely. Key…
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RBI’s Draft Rules for Fair Loan Recovery
The Reserve Bank of India (RBI) has released draft directions on the ‘Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents’. This move expands and updates existing guidelines, aiming to ensure fair practices across a broader set of institutions. Originally limited to Scheduled Commercial Banks (excluding Regional Rural Banks) and Housing…
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How Open Cash Credit and Key Cash Credit differ?
A Cash Credit (CC) account is a credit facility extended to a borrower in the form of running account (like a current account). Under this facility the borrower is permitted to continuously overdraw from his account up to a certain specified amount sanctioned by the bank. This type of funding is provided by banks on…
Read article Understanding the difference between Overdraft and Cash Credit facility
Overdraft means allowing the customer to draw cheques over and above credit balance in his account. Overdraft is usually allowed to Current Account Customers and in exceptional cases SB A/c holders are also allowed to overdraw their account. The high rate of interest is charged on the daily debit balance of overdraft account. There are…
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Continuation of Interest Subvention Scheme through KCC 2025–26
Modified Interest Subvention Scheme (MISS) for 2025–26 continues the concessional short‑term credit support to farmers through Kisan Credit Cards (KCC) for agriculture and allied activities, with no fundamental change in structure vis‑à‑vis earlier years. It aims to ensure assured, affordable and timely working capital to cultivators while incentivising prompt repayment and supporting the viability of…
Updated RBI Priority Sector Lending (PSL) Directions, 2025
The RBI Priority Sector Lending (PSL) Master Directions, 2025, updated as on January 19, 2026, consolidate and supersede the earlier 2020 guidelines. These Directions apply to Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Local Area Banks (LABs), and Urban Co-operative Banks (UCBs), excluding Salary Earners’ Banks. The revised framework aims to strengthen…
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