1. Hutatma Sahakari Bank Ltd., Walva, Maharashtra Key Details Penalty Amount: ₹5 Lakh Date of Order: June 19, 2026 Nature of Violation: Sanctioned loans to a relative of its director. Non-compliance with directions on ‘Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested’. Root Cause Analysis (RCA) Failure […]
The Reserve Bank of India (RBI) has issued a draft Master Direction for the Call, Notice, and Term Money Markets, aiming to deepen market participation and enhance liquidity. The directions consolidate previous circulars and introduce explicit borrowing limits, mandate NDS-CALL platform membership, and stipulate strict early termination clauses. Market participants must align their treasury operations,
On June 25, 2026, the Reserve Bank of India (RBI) released a Draft Master Direction consolidating and streamlining the compliance instructions for secondary market transactions in Government Securities (G-Secs). 1. Applicable Entities The directions govern secondary market transactions undertaken in the over-the-counter (OTC) market and on recognized stock exchanges in India. The applicability is broad
The Reserve Bank of India (RBI) has issued a holistic framework to govern the rapidly expanding use of models (including AI/ML and third-party systems) across financial institutions. Recognising the financial, operational, compliance, and reputational risks of flawed models, the guidance mandates a robust Model Risk Management Framework (MRMF), strict lifecycle governance, independent validation, and enhanced
Management Report: RBI Master Direction on Credit Derivatives 2026 Following the Union Budget announcement for FY 2026-27, the Reserve Bank of India (RBI) has issued the Master Direction on Credit Derivatives 2026. This comprehensive framework introduces landmark changes, specifically enabling derivatives on credit indices and Total Return Swaps (TRS) on corporate bonds. 1. Expansion of
On June 24, 2026, the Reserve Bank of India (RBI) issued finalized Amendment Directions modifying the computational framework for the Net Open Position (NOP) and capital charges for foreign exchange (forex) risk. Aligning deeply with the Basel Committee on Banking Supervision (BCBS) standards, these amendments mandate a unified, global approach to forex risk management, discarding
On June 24, 2026, the Reserve Bank of India (RBI) issued four critical Amendment Directions fundamentally altering the landscape for Non-Banking Financial Companies (NBFCs), particularly Government-owned NBFCs. The most significant shift is the transition from a complex scoring methodology to a simple, absolute asset-size criterion (₹1,00,000 crore) for identifying Upper Layer NBFCs (NBFC-UL), alongside the
The Reserve Bank of India (RBI) has issued a significant set of amendments on June 24, 2026, aimed at enhancing customer protection in digital transactions. Stemming from the draft issued on March 6, 2026, these amendments expand the scope of customer liability limits beyond mere “unauthorised” transactions to include broader categories of “fraudulent” electronic banking
The Reserve Bank of India has issued the finalized Trade Receivables Discounting System (TReDS) Directions, 2026, superseding previous operational frameworks. The amendments aim to accelerate MSME liquidity by removing onboarding frictions, harmonizing operational guidelines, and fortifying the capital structure of platform operators. Immediate strategic and operational realignments are required by platform participants to remain compliant
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
