The High Court quashed a reassessment for A.Y. 2015–16 where the Section 148 notice was issued after 1 April 2021. Relying on the Revenue’s binding concession before the Supreme Court, all consequential actions were set aside.
The notification updates the IEPF Authority’s composition by appointing an RBI Executive Director as an ex-officio member. The key takeaway is the revised institutional representation within the Authority.
The issue involved prolonged delay in filing Form MGT-14 for approval of annual accounts. The authority held that such delay attracts residuary penalty despite subsequent compliance.
The case addressed failure to appoint a woman director within the statutory timeline. The authority held the company and its officers liable under the residuary penalty provision.
The draft norms link dividend payouts by Payment Banks to their Tier 1 capital ratios and overall capital adequacy. Only well-capitalised banks with sustainable profits can distribute dividends, ensuring financial stability.
The regulator has introduced a capital-linked dividend framework for Small Finance Banks effective FY 2026–27. Dividend payouts are capped and graded based on Tier 1 capital ratios, ensuring distributions do not weaken financial resilience.
The authority held that failure to disclose related party contracts and justifications in the Board’s Report violates statutory transparency norms. A personal monetary penalty was imposed on the responsible director.
The amended directions introduce stricter definitions, prohibitions, and Board-level controls over related party lending by Small Finance Banks. Asset-based thresholds, recusal norms, and strong enforcement measures aim to curb conflicts of interest from April 2026.
New amendments impose detailed definitions, strict prohibitions, and Board-level oversight for related party lending by rural co-operative banks. The framework strengthens governance, limits conflicts of interest, and enhances enforcement from April 2026.
New norms require Small Finance Banks to disclose detailed data on related party loans, NPAs, provisions, and contracts, enhancing transparency from April 2026.
