How a Bank Should Deal When a Bank Guarantee Is Invoked and the Customer Fails to Reimburse
When a Bank Guarantee (BG) issued on behalf of a customer is invoked by the beneficiary and the bank settles the claim, the bank becomes a creditor to the customer for the amount paid. If the customer fails to reimburse the bank, the bank must follow a series of operational, legal, and recovery steps as…
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West Bengal State: Bank holidays 2026
The Government of West Bengal has declared 27 public holidays under Section 25 of the Negotiable Instruments Act, 1881, for the calendar year 2026, as per Finance (Audit) Department Notification No. 4188‑F(P2) dated 27.11.2025. In addition, 1 April 2026 (Wednesday) is a bank holiday exclusively for yearly closing of bank accounts, when Government offices and…
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NSFI 2025–2030: RBI Unveils the Next Phase of India’s Financial Inclusion Roadmap
The Reserve Bank of India (RBI) has released the National Strategy for Financial Inclusion (NSFI): 2025–30, approved by the Sub-Committee of the Financial Stability and Development Council (FSDC-SC) in its 32nd meeting. The document was formally launched by Shri Sanjay Malhotra, Governor, RBI, on December 1, 2025. A Synergistic, Ecosystem-Driven Approach The NSFI: 2025–30 adopts…
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RBI’s 2025 Interest Rate Framework for Commercial Banks: Key Points Explained
The Reserve Bank of India (RBI) has issued updated directions (2025) governing how commercial banks must set and pay interest on domestic deposits, NRE/NRO deposits, and FCNR(B) deposits. The circular emphasises transparency, uniformity, and customer protection. 1. Uniform, Transparent Interest-Rate Framework – Board-approved interest-rate policy. – Uniform, non-discriminatory rates across branches. – No negotiated rates;…
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When Police Refuse to Register an FIR: Legal Remedies Under CrPC & BNSS
(A Practical Guide for Banks and financial institutions) 1. Understanding FIR, Section 154 CrPC and Section 173 BNSS Section 154 CrPC governs how police must record information relating to cognizable offences. Registration of an FIR for cognizable offences is a mandatory duty of the police. When an officer in charge refuses to register an FIR,…
Non-Fund Based Facilities to Non-Constituent Borrowers: RBI Relaxation and Key Conditions
The Reserve Bank of India (RBI), through circular DBOD.Dir.BC.62/13.07.09/2002-03 dated January 24, 2003, had earlier prohibited banks from extending non-fund based facilities to non-constituent borrowers. This restriction was aimed at preventing frauds, fund diversion, and misuse of one-off transaction-based facilities without proper credit assessment. However, over time, this blanket bar created genuine challenges for borrowers…
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