Summary: The weekly regulatory updates for 7–11 October 2026 cover important developments in Income Tax, GST, Customs, DGFT, SEBI, MCA, IBBI, RBI and judicial decisions. On the income-tax front, a revised Form 161 was notified for seeking waiver of penalties, while the Supreme Court ruled that electricity subsidies linked to operational expenses constitute taxable revenue receipts. The Delhi High Court directed CBDT to consider prescribing a timeframe for cancelling duplicate PANs. In GST, the 57th GST Council recommended significant reforms relating to registration, return filing, refunds, input tax credit, penalties and prosecution. Important AAR and AAAR rulings addressed exemptions for educational services, flour milling, business transfers and government-related subcontracts, alongside GST classification of electric vehicle kits, geomembranes and playground equipment. An advance ruling also examined input tax credit on IPO expenses. Customs developments included expanded operations at Dabhol Port, concessional duty treatment for industrial battery energy storage systems, BIS compliance for smartphone screen protectors and export declaration procedures.
Notifications & Circulars issued during week (7th – 11th Oct 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
Income Tax
Revised Form 161 for seeking Penalty Waiver under Income Tax Act: The notification amends Rule 231 by inserting the words “or waiver” after “imposition” and substitutes Form No. 161 with a revised application Form for seeking waiver of penalty under Section 440(2) of Income Tax Act 2025.
( Income Tax Notification 134/2026 Dated 08/10/2026)
SC, Electricity Cost Subsidy is Taxable Revenue Receipt: Case of Mepco Industries vs CIT, SC Judgement 7th October 2026. The subsidy was granted after commercial production commenced and was calculated directly based on a percentage of actual power consumed over the initial years, its operational effect was to reduce day-to-day manufacturing and electricity expenses. The court held that an electricity/power subsidy granted to an operational manufacturing unit is in the nature of a revenue receipt taxable under the Income Tax Act.
HC, CBDT Must Decide a Clear Timeframe for Duplicate PAN Cancellation: Case of Abhay Gupta vs Union of India, HC Delhi Judgement Dated 30th September 2026. The court directed CBDT to consider setting a clear timeframe for deciding applications to cancel or surrender duplicate Permanent Account Numbers (PANs).
( HC Delhi Judgement Dated 30/09/2026)
GST
GSTN, Recommendations of the 57th GST Council Meeting- Key Reforms: The GST Council, in its 57th meeting held on 8th October 2026, recommended a series of reforms to simplify GST compliance, streamline registration and return filing, expedite refunds, and improve the flow of Input Tax Credit (ITC). The Key recommendations include the removal of arrest provisions under GST, raising the prosecution threshold from Rs 1 crore to Rs 5 crore, reducing the maximum general penalty from Rs 25,000 to Rs 10,000 simplifying GST registration for small e-commerce sellers, and facilitating the movement of goods across States.
( GSTN Advisory Dated 09/10/2026, Press Release)
GSTN, FAQs in relation to recommendations of the 57th GST Council Meeting: The Frequently Asked Questions (FAQs) provide clarifications on key GST recommendations. They cover GST registration and amendments, cancellation procedures, simplified registration for eligible e-commerce sellers, faster and automated refund processing, and proposed changes to ITC refund calculations, including eligible input services and capital goods from specified dates.
( GSTN Advisory Dated 09/10/2026, FAQs)
AAAR, Rejects Pure Services GST Exemption for Private Contractor Subcontract: Case of Immense Construction Company, AAAR Telangana Ruling Dated 23rd September 2026. AAAR upheld the denial of GST exemption on services supplied under a subcontract connected with the Govt of Telangana Mission Bhagiratha drinking-water supply project. The subcontract constituted an independent supply whose immediate recipient was a private company, rather than the State Government or another recipient specified in the exemption notification.
AAR, GST Exemption Allowed for University Diploma Courses of One Year or More: Case of St Xavier College Kolkata Educational Trust, AAR West Bengal Ruling Dated 1st October 2026. AAR ruled that fees charged for university diploma and certificate programs lasting one year or more are exempt from GST.
AAR, PDS Flour Milling GST Exempt If Goods Value remains Within 25% of Composite Supply Value: Case of Darjeeling Flour Mills Private Limited, AAR West Bengal Ruling Dated 1st October 2026. AAR held that the composite supply of milling wheat into fortified flour for distribution through the Public Distribution System (PDS) qualifies for GST exemption under Serial 3A of Notification 12/2017, dated 28th June 2017, provided the value of goods supplied does not exceed 25% of total composite supply value.
AAR, Complete CKD E-Rickshaw Kits attract 5% GST If Specified Conditions Are Met: Case of Bandhan Electric Vehicles LLP, AAR West Bengal Ruling Dated 1st October 2026. AAR held that the proposed supply of complete electric three-wheeler kits in Completely Knocked Down (CKD) condition is classified as a finished e-rickshaw under HSN 87038040 and taxed at a 5% GST rate, subject to fulfilling specific conditions.
AAR, GST Exemption on Partnership Firm Merger into Company is Conditional on Going Concern: Case of Jai Mata Di Jewellers, AAR West Bengal Ruling Dated 1st October 2026. AAR ruled that the transfer of an entire business as a going concern is treated as a supply of services and is eligible for a Nil GST rate under Notification No. 12/2017, provided the going concern conditions are fully met.
AAR, Geomembrane Classified under HSN 59111000, GST 5% Applicable: Case of Salasar Balaji Polysack Private Limited, AAR Gujarat Ruling Dated 29th September 2026. AAR ruled that Geomembrane Pond Liner (used for water conservation in agriculture and aquaculture) is classified under HSN 59111000. The GST rate on the product was reduced to 5% starting September 2025.
AAR, Outdoor Playground Equipment attracts 5% GST, Gym Equipment 18% GST: Case of Sundek Sports Private Limited, AAR Gujarat Ruling Dated 29th September 2026. AAR held that outdoor playground equipment supplied by the party, including slides, swings, see-saws, climbers and multi-activity play stations, is classifiable under HSN 95069990 and attracts 5% GST. Outdoor gym equipment, including twisters, pull-up bars, cross-trainers and leg presses, is classifiable under HSN 95069190 and attracts 18% GST.
AAR, GST ITC allowed on Fresh IPO Expenses used for Business: Case of Sai Silks Kalamandir Limited, AAR Telangana Ruling Dated 18th September 2026. AAR ruled that GST on expenses tied to the fresh issue (like merchant banking, legal, and listing fees) qualifies for ITC if the net proceeds support company business operations, such as working capital and store expansion. However, GST on OFS-related expenses is ineligible for ITC since these proceeds benefit the selling shareholders instead of the company.
SC, Powder Used to Prepare Drink cannot be Taxed as Beverage: Case of Additional Commissioner, Commercial Tax vs Cadila Health Care Ltd, SC Judgement Dated 5th October 2026. The apex court ruled that tax classification depends on the physical form of the product at the time of sale rather than its consumer end-use. The subsequent preparation or how a consumer mixes or consumes the product later does not alter its legal classification. The party contended that the products were sold as powders or biscuits and should fall under the residuary entry taxable at 8%. The court confirmed the 8% residuary tax rate.
Central Excise
No Notifications/ Circulars during the week.
Custom Duty
Amended Customs Notification 62/1994 to Expand Operations at Dabhol Port: The substituted entry specifies several permitted customs operations at Dabhol Port. These include unloading machinery and equipment for the Ratnagiri Gas and Power Private Limited Power Project (RGPPL-PP), unloading liquefied natural gas and naphtha,and loading imported machinery and equipment for export that had been imported for (RGPPL-PP). It also provides for unloading goods for manufacture and repairs of ships, barges and similar vessels and rigs, and their export.
( Customs Notification 81/2026 (NT) Dated 07/10/2026)
Clarification regarding 10% Customs Duty on Industrial BESS and Power Bank Exclusion: The customs exemption entry prescribes a concessional duty rate of 10% for specified goods under tariff item 85076000, subject to exclusions relating to certain electric and hybrid vehicle battery packs, cellular mobile phone batteries or battery packs, and power banks. It has been clarified that “Power Bank” refers only to lithium-ion battery devices equipped with charging or discharging ports and designed to function as external charging devices for cellular mobile phones or portable electronic devices. Accordingly, stationary, grid-scale and industrial lithium-ion Battery Energy Storage Systems (BESS) do not fall within the power bank exclusion under the specified notification entry, and are not to be denied the 10% concessional duty.
( Customs Circular 45/2026 Dated 09/10/2026)
BIS Compliance Mandated for Smartphone Screen Protectors: The amendment adds “Screen Protectors for smartphones” at Serial No. 66 of the Schedule and prescribes IS 19348:2025, titled “Glass Screen Protector Specification”, as the applicable Indian Standard. The provisions of the CRO, 2021 will apply to these goods for conformity with the specified Indian Standard with effect from 1st April 2027.
( Customs Instructions 20/2026 Dated 07/10/2026)
EDF Authentication Mechanism prescribed for Exports Through Non-EDI Custom Locations: The exporters of goods are required to furnish an Export Declaration Form (EDF) specifying the full export value. For exports through EDI ports, the EDF is deemed to form part of the Shipping Bill, while for Non-EDI ports the duly authenticated EDF must be forwarded by the specified authority to the respective Authorised Dealer. The Commissioners of Customs are required to ensure that physical EDFs at Non-EDI Customs locations are received and duly authenticated by the specified authority and thereafter forwarded to the Authorised Dealer mentioned in the EDF.
(Link: Customs Instructions 19/2026 Dated 05/10/2026)
Directorate General of Foreign Trade (DGFT)
Amendments in Foreign Trade Policy (FTP), for Rough Diamond Trading in Special Notified Zones: The notification amends Paragraph 4.49 of the FTP, and revises the eligibility framework for foreign entities undertaking rough diamond transactions within Special Notified Zones (SNZs) administered by designated operators under Customs supervision. Under the revised provision, eligible foreign entities may import rough diamonds and conduct their auction, sale and re-export, as applicable, on a consignment or outright basis. The eligible entities include foreign companies engaged in diamond mining, sightholders of such mining companies, and brokers, aggregators, tender entities or auction entities connected with rough diamond sales.
( DGFT Notification 42/2026 Dated 09/10/2026)
Clarification- Authorisation Sufficient under Silver Import Rules: The circular states that Notification 17/2026 dated 16th May 2026 changed the import policy for silver under ITC(HS) 71069221 from “Free, subject to RBI regulation” to “Restricted, subject to Policy Condition 7 to Chapter 71”. The restricted goods may be imported against a valid DGFT authorisation or under procedures prescribed through applicable notifications or public notices. Accordingly, silver classified under this tariff heading may be imported against a valid authorisation, except where an exemption under Policy Condition No. 7 applies. The circular expressly clarifies that Nominated Agency, IFSCA Qualified Jeweller or EOU status is not an additional eligibility requirement for importing silver.
( DGFT Policy Circular 02/2026 Dated 09/10/2026)
Allocation of 5,841 MT Sugar Export Quota to EU under TRQ for 2026-27: The public notice allocates quantity of 5,841 MT for export of Sugar to EU from India under TRQ for the year 2025-26 (October 2025 to September 2026). It also reiterates that sugar exports to EU under TRQ are classified as ‘Free’, subject to the restrictions and conditions prescribed under Notification No. 03/2015-20 dated 20th April 2015. Certificate of Origin, if required, for preferential export of sugar to EU shall be issued on the recommendation of Agricultural and Processed Food Products Export Development Authority (APEDA) regarding entity and quantity for which eligible.
( DGFT Public Notice 32/2026 Dated 09/10/2026)
Securities and Exchange Board of India (SEBI)
Amendments to SEBI Employees Service Regulations: The notification revise the educational and eligibility framework for SEBI recruitment (such as Grade ‘A’ positions). For General stream, it permits a bachelor’s degree in any discipline with a minimum of 60% marks (50% for SC/ST/PwBD candidates where posts are reserved), an alternative Master’s Degree/Post Graduate Diploma, or professional qualifications like CA, CFA, CS, and Cost Accountant. For specific streams, it updates subject requirements across specialized streams and standardizes CGPA-to-percentage conversion benchmarks. For legal stream, it removes the desirable experience condition.
(Link: SEBI Notification Dated 08/10/2026)
Amendments to SEBI Vault Managers Regulations: The amendments Shifts the framework from a narrow focus on Electronic Gold Receipts (EGRs) to a product-neutral approach covering bullion and bullion-related instruments (including gold/silver ETFs, bullion derivatives, and other SEBI-permitted contracts). The minimum net worth requirement for vault managers has been increased from Rs 50 crore to Rs 75 crore. It also introduces a mandatory requirement for the appointment of a designated Compliance Officer.
( SEBI Notification Dated 08/10/2026)
Amendments to SEBI Certification of Associated Persons in Securities Market Regulations: The amendments replace the term “Associated Person” with “Specified Person” across regulations. The Specified Person is defined to include Principals or employees of an intermediary, Agents or distributors, Other natural persons engaged in the securities market business and Employees of Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) working in India. It prescribes NISM-specified courses or programmes as alternative or additional routes for obtaining certifications and Continuing Professional Education (CPE).
( SEBI Notification Dated 07/10/2026)
Amendments to SEBI Portfolio Managers Regulations: The notification establish a revised framework for registration, eligibility, conduct and supervision of portfolio managers. These address applications, registration fees, capital adequacy, infrastructure and personnel requirements, including minimum net worth of five crore rupees for ordinary portfolio managers. It also addresses client agreements, disclosure documents, conflicts of interest, fees, portfolio segregation, investment restrictions, custodians, books and records, audits, reporting and grievance redressal. As a general rule, portfolio managers must not accept less than fifty lakh rupees per client. A dedicated Portfolio Management Service Route for Investment in Mutual Fund units (PRIM) is introduced with separate eligibility and operational conditions.
( SEBI Notification Dated 07/10/2026)
Amendments to SEBI Research Analysts Regulations: The key change is that maintaining call recordings of communications with clients who qualify as institutional investors will no longer be mandatory. A new clause has been inserted defining ‘Institutional Investor’ by reference to ICDR Regulations.
( SEBI Notification Dated 08/10/2026)
Amendments to SEBI Intermediaries Regulations: The amendment introduces a comprehensive Common Advertisement Code through the insertion of Chapter IIID. It establishes uniform requirements concerning promotional communications, mandatory disclosures, celebrity endorsements, permissible claims, investor protection and regulatory supervision. Advertisements must disclose essential registration details and applicable disclaimers. It introduces specific restrictions on celebrity endorsements. Celebrities may endorse a regulated entity at brand or entity level, but advertisements cannot contain inducements or claims concerning particular products or services.
( SEBI Notification Dated 08/10/2026)
Amendments to SEBI Mutual Funds Regulations: The amendment introduces a comprehensive Common Advertisement Code through the insertion of Chapter IIID. It establishes uniform requirements concerning promotional communications, mandatory disclosures, celebrity endorsements, permissible claims, investor protection and regulatory supervision. Advertisements must disclose essential registration details and applicable disclaimers.
( SEBI Notification Dated 08/10/2026)
Amendments to SEBI Settlement of Administrative and Civil Proceedings Regulations:
The notification replace SEBI (Settlement Proceedings) Regulations and establishes a revised framework for settling specified administrative and civil proceedings involving securities laws in India. The minimum settlement amount is set at Rs 3 lakh for first-time applicants and Rs 7 lakh for other applicants (plus applicable disgorgement, interest, and filing fees). The settlement amount (SA) is calculated using the formula: SA = BA × (S + R + G + A – M), where BA is the base amount, S is the stage of the proceeding, R is the regulatory history, G is the gravity of the violation, and A/M stand for aggravating and mitigating factors.
( SEBI Notification Dated 06/10/2026)
Credit Risk-o-Meter Mandatory for Debt Securities: The circular introduces a mandatory Credit Risk-o-Meter as an additional visual and colour-coded disclosure mechanism for listed and proposed-to-be-listed debt securities. It must be displayed in Offer documents, Abridged prospectuses, Private placement memoranda (PPM), Relevant issuer and Online Bond Platform Provider (OBPP) advertisements, OBPP web and mobile platform. If a security has multiple credit ratings, the Credit Risk-o-Meter must display the lowest rating.
( SEBI Circular Dated 07/10/2026)
ISIN Limit increased for Private Placement of Debt Securities: The circular increases the maximum number of ISINs maturing in a financial year for an issuer to seventeen, with a further six ISINs available for capital gains tax debt securities. Existing legacy ISINs for Floating Rate Bonds, Zero Coupon Bonds and Debt Capital instruments are grandfathered subject to the stated conditions. It also excludes Government of India serviced/Extra Budgetary Resources bonds and Environment, Social and Governance Debt Securities from the applicable ISIN limits.
( SEBI Circular Dated 07/10/2026)
Exemptions to Certain Listed Issuers from Mandatory Merchant Banker Appointment for Private Placement of Debt: The circular exempts certain listed issuers issuing debt securities or non-convertible redeemable preference shares through private placement at a face value of Rs. 10,000. The exemption applies (a) where the issuer is regulated by SEBI, RBI, IRDAI or PFRDA, (b) has been listed on a recognized stock exchange for at least one year without pending SEBI or stock-exchange fines or penalties (c) has not defaulted during the last three financial years and the current financial year on specified redemption, repayment or interest/ dividend obligations and (d) satisfies prescribed security and credit-rating requirements. The security must also carry a rating of at least AA- on the date of private placement.
( SEBI Circular Dated 07/10/2026)
SEBI Opens Chandigarh Local Office: The Chandigarh Local Office will have jurisdiction over the States of Punjab and Haryana and the Union Territory of Chandigarh and will function under the administrative control and jurisdiction of SEBI’s Northern Regional Office at New Delhi.
( SEBI Press Release Dated 05/10/2026)
Ministry of Corporate Affairs (MCA)
MCA Notifies Indian Corporate Law Service Rules 2026: The Rules constitute the Indian Corporate Law Service as a Group ‘A’ service comprising Higher Administrative Grade, Senior Administrative Grade, Junior Administrative Grade, Senior Time Scale and Junior Time Scale. They prescribe the authorised strength and designations of duty posts, methods of recruitment and promotion, non-functional upgradation, seniority, probation, appointment, service liability, disqualification, relaxation and reservation-related provisions. The Rules provide for direct recruitment to 60 per cent of vacancies in the Junior Time Scale through the Civil Services Examination conducted by the Union Public Service Commission, with the remaining 40 per cent filled by promotion.
( MCA Notification Dated 06/10/2026)
Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, Consent Arbitral Award does not Extinguish Continuing Guarantee: Case of Ravindra Gopalkrishan Agarwal vs Jankalyan Sahakari Bank, NCLAT Delhi Judgement Dated 17th September 2026. The appellate tribunal held that a consent arbitral award with joint and several liability does not extinguish a continuing personal guarantee or convert the guarantor into a co-borrower under IBC. It clarifies that debt restructuring via a consent award does not release personal guarantors from their liabilities.
NCLAT, CIRP Surplus Outside Resolution Plan Distributable Under Section 53 IBC: Case of Manjeet Cotton Pvt Ltd vs Phoenix ARC Pvt Ltd, NCLAT Delhi Judgement Dated 27th April 2026. The appellate tribunal ruled that surplus cash generated by a Corporate Debtor during the CIRP must be distributed under Section 53 of the IBC if the resolution plan is silent on the matter. Section 53 establishes the ‘waterfall mechanism’, which defines the strict order of priority for distributing the proceeds from the sale of a liquidated corporate debtor assets.
Reserve Bank of India (RBI)
RBI Commercial Banks Credit Valuation Adjustment Framework Directions 2026: The Directions establish a framework for calculating regulatory capital requirements against Credit Valuation Adjustment (CVA) risk. It requires banks to calculate CVA risk capital requirements separately for covered transactions in their banking and trading books. Securities financing transactions are excluded from the CVA capital charge. Banks must ordinarily use the Basic Approach for CVA (BA-CVA), comprising reduced and full versions. However, banks whose consolidated group-wide notional amount of non-centrally cleared derivatives does not exceed Rs 10 lakh crore may adopt an alternative treatment, subject to supervisory restrictions. Banks must also make Pillar 3 disclosures using Table CVAA, Template CVA1 and Template CVA2, as applicable.
( RBI Master Directions 474/2026 Dated 07/10/2026)
Introduction of 20% Foreign Exchange Risk Reserve (FERR) for INR Derivatives: The FERR requirement applies to foreign exchange derivative contracts involving INR with a notional value exceeding USD 2 million equivalent, undertaken to hedge current account transactions where the user purchases foreign currency against INR. Authorised Dealers must maintain a reserve equal to 20% of the INR equivalent of the notional amount of each qualifying derivative contract. The reserve must be deposited and maintained in cash in India with the RBI on a daily basis until the relevant contract terminates.
( RBI Circular 292/2026 Dated 10/10/2026)
Tightens INR Forex Derivative Rebooking Rules, Cuts Unhedged Position Threshold to USD 5 Million: The circular revise the regulatory framework governing foreign exchange derivative contracts. Authorised Dealers are prohibited from permitting users to rebook any INR- involving foreign exchange derivative contract, whether deliverable or non-deliverable, that has been cancelled with any Authorised Dealer after the issuance of these directions. The threshold has been reduced for taking positions without establishing the existence of underlying exposure from USD 100 million equivalent to USD 5 million equivalent of notional value.
( RBI Circular 291/2026 Dated 10/10/2026)
Change in Daily Minimum Cash Reserve Maintenance Requirement: The scheduled banks are allowed to maintain minimum Cash Reserve Ratio (CRR) of not less than 90 percent of the required CRR on all days during the reporting fortnight, in such a manner that the average of CRR maintained daily shall not be less than the prescribed CRR. It has been decided to increase the minimum daily maintenance of the CRR to 99 per cent.
( RBI Circular 290/2026 Dated 09/10/2026)
Amendments to RBI All India Financial Institutions Prudential Norms on Capital Adequacy Directions: The amendments updates capital adequacy guidelines for clearing member Payments Banks concerning Qualifying Central Counterparties (QCCPs) to align with international standards. It provides a 2% risk weight for trade exposures to a QCCP, covering both own-account transactions (OTC/exchange-traded derivatives and SFTs) and client clearing services where the bank bears default reimbursement obligations.
( RBI Circular 289/2026 Dated 07/10/2026)
Amendments to RBI Payments Banks Prudential Norms on Capital Adequacy Directions: The amendments updates capital adequacy guidelines for clearing member Payments Banks concerning Qualifying Central Counterparties (QCCPs) to align with international standards. It provides a 2% risk weight for trade exposures to a QCCP, covering both own-account transactions (OTC/exchange-traded derivatives and SFTs) and client clearing services where the bank bears default reimbursement obligations.
( RBI Circular 288/2026 Dated 07/10/2026)
Amendments to RBI Small Banks Prudential Norms on Capital Adequacy Directions: The amendments updates capital adequacy guidelines for clearing member Small Banks concerning Qualifying Central Counterparties (QCCPs) to align with international standards. It provides a 2% risk weight for trade exposures to a QCCP, covering both own-account transactions (OTC/exchange-traded derivatives and SFTs) and client clearing services where the bank bears default reimbursement obligations.
( RBI Circular 287/2026 Dated 07/10/2026)
Amendments to RBI Commercial Banks Prudential Norms on Capital Adequacy Directions: The amendments revises the key capital adequacy guidelines. The Clearing member banks must now apply a standardized 2% risk weight on trade exposures to a Qualified Central Counterparty (QCCP). This includes client-clearing exposures where bank is obligated to compensate clients if a QCCP defaults. It also updates methodology for valuation adjustments related to incurred Credit Valuation Adjustment (CVA) losses.
( RBI Circular 286/2026 Dated 07/10/2026)
Amendments to RBI Commercial Banks Miscellaneous Directions: The amendment deletes Sub-section D of Chapter IV (Paragraph 38) of the master directions. It removes the existing provisions regarding the deferment of option premiums.
( RBI Circular 285/2026 Dated 07/10/2026)
Amendments to RBI Commercial Banks Forthcoming Instructions Directions: The amendments relates to the methodology for calculating minimum capital requirements for counterparty credit risk (CCR). The Standardised Approach for Counterparty Credit Risk (SA-CCR) replaces Current Exposure Method (CEM) for the relevant regulatory exposure calculations. SA-CCR framework measures exposure using replacement cost and potential future exposure, with an alpha multiplier of 1.4. It distinguishes margined and unmargined netting sets, recognises qualifying collateral and legally enforceable netting arrangements, and prescribes asset-class-specific calculations for interest rate, foreign exchange, credit, equity and commodity derivatives.
( RBI Circular 284/2026 Dated 07/10/2026)
Penal Interest on shortfall in CRR and SLR requirements, Change in Bank Rate: RBI has revised the Bank Rate upward by 25 basis points from 5.50 per cent to 5.75 per cent, as announced in the Monetary Policy Statement. Consequently, penal interest rates on shortfalls in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements that are linked to the Bank Rate have also been revised. Depending on the duration of the shortfall, the applicable penal interest rates (Bank Rate plus 3/ 5 percentage) have increased from 8.50/10.50 percentage to 8.75/ 10.75 percentage points.
( RBI Circular 283/2026 Dated 07/10/2026)
Liquidity Adjustment Facility, Change in rates: RBI has announced a 25 basis point increase in the policy repo rate under the Liquidity Adjustment Facility (LAF), raising it from 5.25 per cent to 5.50 per cent, as announced in the Monetary Policy Statement. Consequent to the repo rate increase, the standing deposit facility (SDF) rate has been adjusted to 5.25 per cent and the marginal standing facility (MSF) rate to 5.75 per cent, also with immediate effect.
( RBI Circular 282/2026 Dated 07/10/2026)
Standing Liquidity Facility for Primary Dealers: Monetary Policy Committee (MPC) has increased the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points, from 5.25 per cent to 5.50 per cent. Consequently, the Standing Liquidity Facility available to Primary Dealers from the Reserve Bank as collateralised liquidity support will now be available at the revised repo rate of 5.50 per cent.
( RBI Circular 281/2026 Dated 07/10/2026)
Miscellaneous
SC, Prior Foreign Arbitration Clause cannot Bar Arbitration under Separate Agreements: Case of Shubham Equipment Private Limited vs Rothwell Water Company Limited, SC Judgement Dated 8th October 2026. The apex court held that separate arbitration agreements in subsequent commercial contracts (the Joint Venture Agreement and MoU) operate independently of an earlier technical license agreement, and appointed the arbitrator.
SC, Upholds Widow Absolute Bhumidhari Rights under Hindu Succession Act: Case of Sultan Singh (Dead) Through LRs and Others Vs Financial Commissioner, Government of NCT of Delhi, SC Judgement Dated 9th October 2026. The apex court held that the rule of succession for a female Bhumidhari is determined by the personal law applicable at the time of her death, not the law in force.
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Compiled by:- CMA Yash Paul Bhola, MBA, FCMA. Former Director (Finance), National Fertilizers Limited.
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
