RBI releases 2025 directions on classification, valuation, and operation of investment portfolios, ensuring small finance banks follow robust risk management practices.
RBI issues 2025 Directions to regulate major shareholders in payments banks, emphasizing fit and proper criteria, prior approvals, and continuous monitoring.
The RBI introduced binding exposure ceilings for Local Area Banks to prevent excessive borrower and sectoral concentration. The Directions strengthen balance-sheet resilience through clear caps and Board oversight.
The Tribunal upheld deletion of a Rs. 17.93 crore disallowance since the assessee earned no exempt income during the year. It applied binding High Court rulings holding that Section 14A cannot operate without exempt income. The decision confirms that the 2022 amendment to Section 14A is prospective.
RBI’s 2025 Directions mandate standardized presentation and disclosures in Payments Banks’ financial statements, improving transparency and regulatory oversight.
The regulator mandates explicit consent, bans unsolicited cards and upgrades, and strengthens disclosures, billing, and closure timelines. The key takeaway is enhanced consumer protection with clear penalties for non-compliance.
The RBI mandates Small Finance Banks to assess climate risks and fund eligible green projects, enhancing transparency and preventing greenwashing.
The RBI issued new Directions mandating stricter credit risk management, UFCE monitoring, and governance norms for Local Area Banks to strengthen financial stability.
The RBI issues comprehensive guidelines on outsourcing for small finance banks, covering financial and IT services, risk management, and Board accountability.
Explains the RBI’s 2025 Directions mandating structured liquidity risk governance, SLS reporting, and strict mismatch limits for payments banks. Highlights the emphasis on board oversight and Basel-aligned practices.
