The regulator has issued binding directions standardising how Local Area Banks present and disclose financial statements, effective immediately to enhance transparency.
Dividend payouts by banks are restricted by capital adequacy and asset quality metrics, ensuring prudent financial management. The Directions prevent declaration from unrealised gains or extraordinary profits.
The ITAT held that reassessment notices issued without the correct statutory sanction under section 151(ii) are void ab initio, emphasizing that procedural compliance is crucial before examining merits of the case.
RBI issues clear guidelines for identifying wilful and large defaulters to ensure transparency and prevent misuse of bank credit. Banks must report defaults and monitor fund usage to strengthen accountability.
ITAT Delhi held that the LTCG derived from exclusive transfer of equity shares and units of equity oriented mutual funds only is held eligible for exemption under section 10(38) of the Income Tax Act. Thus, ground raised by the revenue stands allowed.
RBI mandates early recognition, monitoring, and resolution of stressed assets by banks, including compromise settlements, technical write-offs, and structured restructuring plans to ensure timely recovery.
RBI mandates uniform reporting formats, fortnightly data updates, and SHG member reporting for Small Finance Banks to improve credit information accuracy and consumer protection.
Karnataka High Court held that initiation of penalty proceedings under section 271(1)(c) of the Income Tax Act without specifying the limb under which penalty proceedings has been initiated is bad-in-law. Accordingly, question is answered in favour of respondent/assessee.
RBI mandates clear policies for interest on savings, term, and foreign currency deposits, ensuring transparency, fairness, and board-approved uniformity across commercial banks.
RBI has notified new Directions governing miscellaneous regulatory and operational aspects of RRBs. Certain provisions also apply to sponsor banks, reinforcing shared oversight. The key takeaway is immediate, mandatory compliance across the rural banking framework.
