Five Star Business Finance Limited Penalty: ₹6.20 Lakh 📋 Key Details Date of Order: June 18, 2026 Violations: KYC Directions & Fair Practice Code. Specifics: Lack of software for suspicious transaction reporting; failure to disclose risk gradation and rationale for interest rates to borrowers. 🔍 Root Cause Analysis (RCA) Over-reliance on manual AML/KYC monitoring processes […]
Subject: Finetuning the LBS framework, restructuring fora, and strengthening administrative functioning for enhanced credit flow. 1. Executive Summary Following the public consultation initiated via a draft circular on February 13, 2026, the Reserve Bank of India (RBI) has issued the final revised guidelines for the Lead Bank Scheme (LBS) on June 19, 2026. The revised
Following public consultations, the Reserve Bank of India (RBI) issued finalized Master Directions on June 19, 2026, to revamp the Kisan Credit Card (KCC) framework. Effective January 1, 2027, these changes standardize crop season definitions, extend KCC tenure, and integrate modern agricultural technology expenses into credit limit assessments. Amendment 1 Reserve Bank of India [Commercial
Master Directions issued by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007 (PSS Act). The purpose of this framework is to enhance clarity, ease of access, and reduce the compliance burden. 1. Standardised Computation of Net-Worth Applicable Entity: All existing PSOs and New Applicants Specific Changes Required Strict Definition:
On June 15, 2026, the Reserve Bank of India (RBI) issued a comprehensive set of Amendment Directions targeting Responsible Business Conduct and the Undertaking of Financial Services by Regulated Entities (REs). The objective is to curb mis-selling, regulate Direct Selling Agents (DSAs) / Direct Marketing Agents (DMAs), prohibit “dark patterns” in digital interfaces, and enforce
The Reserve Bank of India (RBI) has placed Mogaveera Co-operative Bank Ltd., Bombay under strict regulatory directions effective from the close of business on June 12, 2026. This action was necessitated by the bank’s deteriorating liquidity position and the failure of its Senior Management and Board to adequately address ongoing supervisory concerns despite continuous engagement
1. Executive Summary & Key Details Involuntary Action 135 NBFCs Cancelled The RBI unilaterally revoked the CoR for 135 entities. These companies are now legally prohibited from transacting the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934. The bulk of these entities were registered
1. IIFL Samasta Finance Limited Key Details Penalty Amount: ₹3.90 lakh. Regulatory Violation: Non-compliance with ‘Know Your Customer (KYC)’ and ‘Fraud Risk Management in NBFCs’ directions. Specific Failures: The company failed to put in place a robust software for the effective identification and reporting of suspicious transactions. Additionally, it failed to disclose correct details of
The Reserve Bank of India (RBI) has issued 11 draft Amendment Directions to standardize the operational frameworks of control and assurance functions—specifically the Chief Risk Officer (CRO), Chief Compliance Officer (CCO), and Head of Internal Audit (HIA). The overarching theme across all regulated entities is the strict mandate for employer-employee relationships (barring external consultants from
The Reserve Bank of India (RBI) has released the draft Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Amendment Directions, 2026. This draft proposes a comprehensive review and overhaul of the framework for computing Counterparty Credit Risk (CCR). It mandates the transition from the legacy Current Exposure Method (CEM) to the more risk-sensitive Standardised
