Garnishee and Income Tax Attachment Orders: A Banker’s Guide
Banks frequently receive garnishee orders from civil courts and attachment orders from the Income Tax Department, both of which require immediate and careful action. These orders mandate banks to freeze customer accounts and remit funds to creditors or tax authorities, subject to statutory conditions. Given the legal sensitivity involved, banks must act promptly, accurately, and…
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Understanding Limited Liability Partnerships (LLPs) in India
Limited Liability Partnerships (LLPs) represent a hybrid business structure that combines the flexibility of partnerships with the liability protections of companies. Enacted under the Limited Liability Partnership Act, 2008, LLPs have gained prominence among professionals like chartered accountants, lawyers, and SMEs in India for their balanced regulatory framework. Key Features LLPs operate as separate legal…
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Credit Risk Management Amendment Directions, 2026: An Overview
The Reserve Bank of India (RBI) issued the *Commercial Banks – Credit Risk Management (Amendment) Directions, 2026* on January 5, 2026, which will come into force from April 1, 2026. Commercial banks have also been given the flexibility to adopt these directions earlier, in full. These amendments represent a significant step towards strengthening credit risk…
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Dividend Declaration and Profit Remittance by Banks: RBI Norms for 2026
Applicability and coverage Core prudential eligibility conditions Before declaring any dividend or remitting profits, a bank must satisfy all of the following prudential conditions: Ceiling on payout and CET1‑linked matrix The Directions propose a graded matrix that caps the maximum dividend payout ratio at 75% of PAT, with the actual permissible percentage linked to…
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Dirty Float (Managed Float): Meaning, Mechanism, Merits & Risks
A dirty float (also called a managed float) is an exchange rate regime where a currency is largely market-determined but the central bank intervenes from time to time to influence its value. It sits between a hard peg and a pure float and is widely used by emerging and even advanced economies to balance flexibility…
Name Change after Marriage? RBI’s KYC Relaxation under PML Rules Explained
Background: PML Rules and Name Change The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 define what constitutes an officially valid document (OVD) for KYC purposes. To ease difficulties faced by individuals whose names change after marriage or otherwise, the Government notified the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2015 (G.S.R. 730(E)…
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