Analysis of Notifications & Circulars for Week ending 6th April 2025

 For the week ending April 6, 2025, several important notifications and circulars were issued across tax, regulatory, and financial domains in India. In income tax, PAN holders who received their PAN using Aadhaar Enrolment ID before October 1, 2024, must link their Aadhaar by December 31, 2025. Also, withdrawals from National Savings Scheme are exempt from TDS under section 194EE. Under GST, biometric Aadhaar authentication for new registrations was introduced in Assam. From June 1, 2025, invoice numbers will be case-insensitive for IRN generation. The AAR issued GST rulings on product classifications including Maida Pappad, tapioca flour, and services such as housekeeping in government hospitals and works contracts for HVDC systems. In customs, import conditions were eased for specific electronics, and new regulations for post-export shipping bill modifications were introduced. The Supreme Court ruled in favor of the taxpayer in a classification dispute due to inconclusive evidence. DGFT authorized the export of essential goods to the Maldives for 2025-26. RBI released updated Master Circulars covering various areas such as credit to SC/ST communities, the Lead Bank Scheme, capital adequacy norms, and currency exchange processes. A draft FEMA regulation on foreign trade proposes stricter timelines for realisation and reporting of export-import transactions. RBI also launched a verified WhatsApp channel for public awareness. Lastly, the Delhi High Court held that a mismatch in a cheque’s written and numerical amounts does not invalidate a trial under the Negotiable Instruments Act. These updates reflect continuous efforts toward digitalisation, compliance, and regulatory simplification across multiple sectors.

Notifications & Circulars issued during week (31^st – 6^th Apr 2025)

1. Income Tax

PAN holders must link Aadhaar for applications filed before 1^st October 2024: The amendment inserts new sub-rule (5AA) in Rule 114 of Income Tax. The individuals who were allotted a Permanent Account Number (PAN) based on an Aadhaar Enrolment ID before 1^st October 2024, must intimate their Aadhaar number to the Principal Director General of Income-tax (Systems) or an authorized authority. (Income tax Notification 25/2025 Dated 03/04/2025)

PAN-Aadhaar linking mandatory for applications before 1^st Oct 2024, deadline 31^st Dec 2025: The notification issued under Section 139AA(2A) of Income Tax Act, mandate that individuals who obtained a Permanent Account Number (PAN) using an Aadhaar Enrolment ID before 1^st October 2024, must intimate their Aadhaar number to the Principal Director General of Income-tax (Systems) or an authorized authority. The deadline for compliance is 31^st December 31, 2025. (Income tax Notification 26/2025 Dated 03/04/2025)

No TDS under section 194EE on withdrawals from NSS deposits: The notification provides that withdrawals from National Savings Scheme (NSS) under section 80CCA, made by individuals, will not be subject to tax deduction at source (TDS) under Section 194EE. Earlier the Finance Act 2025 had provided exemption to the withdrawals made by individuals on or after 29th day of August, 2024, from NSS. (Income tax Notification 27/2025 Dated 04/04/2025)

B. GST

Advisory on Biometric-based Aadhaar authentication and document verification for GST registration applicants of Assam: CGST rule was amended which provide for identification of applicants on biometric- based Aadhaar authentication, which includes taking the applicant’s photograph and verifying the original documents submitted with the application. The new functionality mandates that after submitting Form GST REG-01, applicants will receive an email with either a link for OTP-based Aadhaar Authentication or a link to book an appointment at a GST Suvidha Kendra (GSK). It has been rolled out in Assam effective from 1^st April 2025. (GSTN Advisory Dated 02/04/2025)

Advisory on Case Sensitivity in IRN Generation: This is to inform that, effective 1st June 2025, the IRP (Invoice Reporting Portal) would treat invoice/document numbers as case-insensitive for the purpose of IRN generation. The invoice numbers reported in any format (e.g. abc, ABC or Abc ) would be automatically converted to uppercase before IRN generation. This change aligns with the treatment of invoice numbers in GSTR-1, which already treats them as case-insensitive. (GSTN Advisory Dated 04/04/2025)

AAR, Maida Pappad (Uncooked Snack Pellets) taxable at 5% GST: Case of VK Samy Biscuits & Confectioneries, AAR Tamil Nadu Ruling Dated 20th March 2025. AAR ruled that the product, `Maida Pappad’ as referred to by the applicant in the instant case, are nothing but un.-cooked/un-fried snack pellets, obtained through the process of extrusion, and that the same is liable to tax at the rate of 5% under GST, with effect from 27.07.2023 onwards, in view of entry S.No.99B of Schedule I to Notification No.01/2017 (Rate) dated 28^th June 2017. (AAR Tamil Nadu Ruling dated 20/03/2025)

AAR, Tapioca Flour taxable at 5% GST: Case of VS Trading Company, AAR Tamil Nadu Dated 18th March 2025. The application for rectification of an earlier ruling (classification of tapioca flour under HSN 2303.10 ‘Residues of starch manufacture’ at a 5% tax rate), has been rejected. AAR reiterated that based on the company’s initial submissions, the tapioca flour was a by-product of starch production, thus falling under the “Residues and waste from the food industries” category. It emphasized that the company’s description of the manufacturing process aligned with starch residue production, and the product’s use as animal feed further supported this classification. (AAR Tamil Nadu Ruling dated 18/03/2025)

AAR, Hitachi’s High Voltage Direct Current (HVDC) Services are Works Contract liable to 18% GST: Case of Hitachi Energy India Limited, AAR Tamil Nadu Dated 18th March 2025. AAR ruled that the supply of service of transportation, freight and insurance provided for the goods supplied by the applicant is in the nature of Works Contract Service and shall be chargeable to taxes under GST at 18% GST. (AAR Tamil Nadu Ruling dated 18/03/2025)

AAR, Onion Market Fee is exempt for Municipality: Case of Tiruppur City Municipal Corporation, AAR Tamil Nadu Dated 27th March 2025. AAR ruled that the activity of leasing, to the tender contractor, the right to collect entry fees on a daily basis, from merchants/farmers/public for onion mandis (shops/ godowns) would be covered under the function entrusted to Municipality under Article 243W of the Constitution. As per notification 14/2017 dated 28^th June 2017 as amended,  the activity is ‘neither supply of goods nor supply of services’. (AAR Tamil Nadu Ruling dated 27/03/2025)

AAR, Housekeeping & Support Services to Govt. hospitals exempt under GST: Case of Quality Property Management Services Private Limited, AAR Tamil Nadu Dated 20th March 2025. AAR ruled that the proposed supply of services for housekeeping, security, assistance in electrical, plumbing, etc., to the Government hospitals under the charge of the Directorate of Medical and Rural Health Services, Tamilnadu, is exempt under Entry No.3 of Notification 12/2017 (Rate) dated 28^th June 2017. (AAR Tamil Nadu Ruling dated 20/03/2025)

C. Central Excise

No Notification/ Circular during the week.

D. Custom Duty

Removal of import conditions for certain goods: The notification amend previous rate notification 50/2017 dated 30^th June 2027. The amendment eases the import conditions, i.e. remove condition No. 9 from Serial No. 515C, for certain electronic goods excluding Interactive Flat Panel Displays (IFPD). (Custom Notification 23/2025 (T) Dated 04/04/2025)

Export Entry (Post export conversion in relation to instrument-based scheme) Regulations: These regulations replace the Shipping Bill (Post Export Conversion) Regulations, 2022 and govern the amendment of export declarations after goods have been exported under an instrument-based scheme. Under the new rules, exporters seeking post-export conversion must apply in writing within one year from the clearance of goods. The exporters must not have availed or must reverse any previous benefits before conversion is granted. (Custom Notification 21/2025 (NT) Dated 03/04/2025)

Implementation of Export Entry (Post export conversion in relation to instrument-based scheme) Regulations:  The circular introduces new regulations for post-export modifications to shipping bills. It implements electronic amendments under Section 149 of the Customs Act, along with electronic provisional assessment for exports. Changes to critical fields like Port of Loading, Destination, and HS Code require Additional/Joint Commissioner approval. A one-year time limit is set for export entry conversions. (Custom Circular 11/2025 Dated 03/04/2025)

Polyethylene Glycol Not Classified Under SCOMET: CBIC clarified that this substance does not fall under SCOMET’s export control list. The exporters are not required to obtain SCOMET export authorization for Polyethylene Glycol. (Custom Instructions 03/2025 Dated 03/04/2025)

SC, Department’s Classification not acceptable Without Conclusive Evidence: Case of Gastrade International vs Comm of Customs, SC Judgement Dated 28th March 2025. Though the product was sent for laboratory test in three premier laboratories, these laboratories did not give conclusive finding that the product is indeed HSD and the expert also could not give a definitive opinion. SC held in view of the facts and circumstances, that it would be more appropriate to give the benefit of doubt to the appellants because of the inconclusive evidence, rather than directing for a fresh testing and seeking fresh expert opinion, as a one-time measure. (SC Judgement Dated 28/03/2025)

E. Directorate General of Foreign Trade (DGFT)

Supply of essential commodities to the Republic of Maldives during 2025-26: The notification authorizes the export of essential commodities to the Republic of Maldives for the fiscal year 2025-26, under a bilateral trade agreement. It specifies quantities for items including eggs, potatoes, onions, rice, wheat flour, sugar, dal, stone aggregate, and river sand. The exports are exempt from any existing or future restrictions or prohibitions during this period. The export of prohibited or restricted items are permitted only through six designated Customs ports. (DGFT Notification 01/2025 Dated 01/04/2025)

Roasted Areca Nuts Now Prohibited Below CIF Rs 351 per Kg: DGFT has amended the import policy for roasted areca nuts, changing it from “Free” to “Prohibited.” The imports are now permitted only if the Cost, Insurance, and Freight (CIF) value is ₹351 or more per kilogram. (DGFT Notification 02/2025 Dated 02/04/2025)

Land Custom Station (LCS) Darranga, Assam added for food imports: DGFT has added Darranga Land Custom Station (LCS) as a designated food import entry point. It updates Appendix-V of Schedule-I (Import Policy), increases the total number of food import entry points to 162, including sea ports, airports, LCSs, and inland container depots. The food imports have been handled by FSSAI-authorized officers, maintaining safe food import standards. (DGFT Notification 03/2025 Dated 02/04/2025)

DGFT Updates List of Banks Authorized to Import Gold/ Silver:  DGFT has amended Appendix 4B of the Handbook of Procedures (HBP), updating the list of banks authorized by RBI to import gold and/or silver for the financial year 2025-26. The notice details two lists, one for banks authorized to import both gold and silver, and another for banks authorized to import gold only. (DGFT Public Notice 01/2025 Dated 03/04/2025)

F. Securities and Exchange Board of India (SEBI)

Amendment to SEBI Infrastructure Investment Trusts (InvITs) Regulations: The key changes include revised rules for filling independent director vacancies within investment managers, requiring prompt filling of vacancies to maintain compliance. It also introduce detailed roles and responsibilities for trustees, emphasizing transparency, accountability, and unitholder protection. The regulations adjust rules related to the transfer of locked-in units held by sponsors, allowing transfers within sponsor groups under certain conditions. (SEBI Notification Dated 01/04/2024)

Extension of timeline for implementation for participation of retail investors in Algorithmic trading: The deadlines has been extended for implementing its circular on “Safer participation of retail investors in Algorithmic trading.” The implementation standards, to be formulated by the Broker’s Industry Standards Forum (ISF), will now be effective from 1^st May 2025 and overall provisions will apply from 1^st August 2025. (SEBI Circular Dated 01/04/2025)

Clarification on position of Compliance Officer in LODR Regulations:  The circular clarifying the position of Compliance Officers in listed entities, as per 6(1) of SEBI LODR Regulations. It clarified that a Compliance Officer must be one level below the Managing Director or Whole-time Director, or if absent, one level below the CEO or equivalent. (SEBI Circular Dated 01/04/2025)

Relaxation of provision of advance fee rules for Investment Advisers (IAs) and Research Analysts(RAs): SEBI has increased the permissible advance fee period from three months for RAs and two quarters for IAs to one year, provided it is agreed upon by the client. The relaxed provisions apply specifically to individual and Hindu Undivided Family (HUF) clients who are not accredited investors. Fees for non-individual clients, accredited investors, and institutional proxy adviser recommendations will be determined through bilateral contracts. (SEBI Circular Dated 02/04/2025)

Recognition and operationalization of Past Risk and Return Verification Agency (PaRRVA): This initiative aims to standardize the verification of past performance claims made by regulated entities, including Investment Advisers (IAs), Research Analysts (RAs), and Algo providers empanelled with Stock Exchanges (SEs). Under the framework, a SEBI-registered Credit Rating Agency (CRA) meeting specific criteria (minimum 15 years existence, ₹100 crore net worth, 250+ rated issuers) can apply to be recognized as a PaRRVA. This PaRRVA must partner with an eligible SE (minimum 15 years existence, ₹200 crore net worth, nationwide terminals) which will act as the PaRRVA Data Centre (PDC). The PDC will handle the technical aspects of data processing and system hosting, receiving data from Market Infrastructure Institutions (MIIs), AMFI, and regulated persons, while the PaRRVA defines the verification methodology and holds overall responsibility. (SEBI Circular Dated 04/04/2025)

Standardized format for System and Network audit report of Market Infrastructure Institutions(MIIs): The standardized format, developed in consultation with SEBI’s Technology Advisory Committee (TAC) and MIIs, will ensure consistent reporting across all MIIs and facilitate focused compliance monitoring. The new format includes unique IDs for audit observations, aiding traceability. (SEBI Circular Dated 04/04/2025)

Draft Circular on Investor Charter for KYC (Know Your Client) Registration Agencies (KRAs): The charter aims to enhance investor awareness regarding KRA services, investor rights, and grievance redressal mechanisms. It outlines KRA services like KYC registration, status tracking, and data protection, while also detailing investor rights, including data privacy and access to grievance redressal. Investors are provided with Dos and Don’ts to ensure smooth KYC compliance. The stakeholders comments/ suggestions are invited. (SEBI Draft Circular Dated 04/04/2025)

SEBI launches Document Number Verification System (DNVS): This system assigns a unique Outward Number to physical communications like letters and notices. Users can verify the authenticity of these documents by entering the Outward Number and other details like sender and recipient names, and the date, after authenticating via an OTP sent to the recipient’s mobile number. The verification confirms the issuance of the document by SEBI, but does not validate its content. The DNVS is accessible through the SEBI website. (SEBI Press Release dated 03/04/2025)

G. Ministry of Corporate Affairs (MCA)

Draft Amendments to Companies Compromises, Arrangements and Amalgamations Rules: The draft rules aim to widen the scope of fast-track mergers under Section 233 of the Companies Act, 2013. Presently, it allows fast-track mergers between small companies and between a holding company and its wholly owned subsidiary. The new draft proposes to further extend eligibility to additional classes of companies. These include: (i) two or more unlisted companies (excluding Section 8 companies) with borrowings below ₹50 crore and no loan defaults, subject to an auditor’s certificate; (ii) mergers between a holding company (listed or unlisted) and its one or more unlisted subsidiaries, even if not wholly owned; (iii) mergers between fellow unlisted subsidiaries of the same holding company; and (iv) inclusion of foreign holding companies merging with their Indian wholly owned subsidiaries as per rule 25A(5). The stakeholders comments/ suggestions are invited. (MCA Public Notice Dated 04/04/2025, Draft Notification)

H. Insolvency and Bankruptcy Board of India (IBBI)

Amendment to IBBI Insolvency Professionals Regulations: The regulation 5(a) has been modified, changing the word ‘twelve’ to ‘twenty-four’. It prescribes the time period required after passing of Limited Insolvency Examination for application for enrolment with insolvency professional agency. (IBBI Notification Dated 03/04/2025)

Amendment to IBBI Insolvency Resolution Process for Corporate Persons (CIRP) Regulations:  The amendment revises Form H, the Compliance Certificate under Regulation 39(4) of CIRP Regulations. The updated Form H provides a comprehensive reporting format for resolution professionals, covering key milestones of the corporate insolvency resolution process (CIRP), from initiation to implementation. The form requires disclosure of dates related to CoC constitution, EoI issuance, resolution plan submission, approval, and filing with the adjudicating authority. It includes detailed information on fair and liquidation values, meeting records, realisable amounts, performance guarantees, and implementation terms. (IBBI Notification Dated 03/04/2025)

NCLAT, Reopening of approved resolution plan for belated claim not justifiable: Case of Krishan vs HS Oberoi Buildtech Private Limited, NCLAT Delhi Judgement Dated 7th March 2025. The appellate tribunal held that post approval of resolution plan both by CoC and the adjudicating authority, it cannot be reopened on the basis of claims being belatedly agitated by the appellant. Thus, admission of claim rightly rejected by adjudicating authority. (NCLAT Delhi Judgement Dated 07/03/2025)

I. Reserve Bank of India (RBI)

RBI Master Circular- SHG Bank Linkage Programme: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines regarding SHG-Bank Linkage Programme, aimed at promoting financial inclusion by linking Self-Help Groups (SHGs) with banks, issued by the RBI up to 31^st March 2025. (RBI Notification 01/2025 Dated 01/04/2025)

RBI Master Circular- DAY-NRLM Guidelines: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines regarding Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), involving financial assistance for Self Help Groups (SHGs), Community Investment Support Fund (CIF) etc., issued by the RBI up to 31^st March 2025. (RBI Notification 02/2025 Dated 01/04/2025)

RBI Master Circular- on Credit facilities to SCs & STs: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines regarding credit facilities for Scheduled Castes (SCs) and Scheduled Tribes (STs), issued by the RBI up to 31^st March 2025. (RBI Notification 03/2025 Dated 01/04/2025)

RBI Master Circular- Lead Bank Scheme: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines regarding Lead Bank Scheme (LBS), issued by the RBI up to 31^st March 2025. (RBI Notification 04/2025 Dated 01/04/2025)

RBI Master Circular- Government Pension Disbursement by Agency Banks: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines regarding pension payments, including timely crediting of pensions, implementation of government directives on dearness relief, and handling of excess payments, issued by the RBI up to 31^st March 2025. (RBI Notification 05/2025 Dated 01/04/2025)

RBI Master Circular- Government Business & Agency Commission: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines issued by the RBI up to 31^st March 2025. Eligible transactions include revenue receipts, payments, and pension disbursements for central and state governments, while ineligible transactions cover bank guarantees, autonomous body business, and certain prefunded schemes. (RBI Notification 06/2025 Dated 01/04/2025)

RBI Master Circular- Board of Directors UCBs:  It updates the previous Master Circular, by consolidating all instructions and guidelines, on the composition of the board, the roles and responsibilities of directors, the establishment of board committees like the Audit and Risk Management Committees, and the required calendar of reviews, issued to Urban Cooperative Banks (UCBs) up to 31^st March 2025. (RBI Notification 07/2025 Dated 01/04/2025)

RBI Master Circular- Basel III Capital Regulations: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines on Basel III capital adequacy, issued by the RBI up to 31^st March 2025, applicable to all Scheduled Commercial Banks, excluding Small Finance Banks, Payment Banks and Regional Rural Banks (RRBs). (RBI Notification 08/2025 Dated 01/04/2025)

RBI Master Circular- Capital Adequacy Norms for Primary UCBs: It updates the previous Master Circular, by consolidating all instructions and guidelines relating to capital adequacy requirements, issued to Urban Cooperative Banks (UCBs) up to 31^st March 2025. (RBI Notification 09/2025 Dated 01/04/2025)

RBI Investment Portfolio Management for Banks Directions FAQs: Frequently Asked Questions (FAQs) has been released to clarify its ‘Reserve Bank of India (Classification, Valuation and Operation of the Investment Portfolio of Commercial Banks) Directions, 2023’. The FAQs cover topics such as the classification of bonds with put options under the Held-To-Maturity (HTM) category, the determination of fair value for investments at initial recognition, the amortization of discounts or premiums on securities with call or put options, and the classification of instruments received from the conversion of principal or interest. (RBI Notification 10/2025 Dated 01/04/2025)

RBI Master Circular- Guarantees, Co-Acceptances & LCs for UCBs: It updates the previous Master Circular, by consolidating all relevant instructions and guidelines issued to Urban Cooperative Banks (UCBs) up to 31^st March 2025. (RBI Notification 11/2025 Dated 01/04/2025)

RBI Master Circular- Bank Guarantees & Co-Acceptances:  It updates the previous Master Circular, by consolidating all relevant instructions and guidelines issued by the RBI up to 31^st March 2025, applicable to all Scheduled Commercial Banks, excluding Payment Banks and Regional Rural Banks (RRBs). (RBI Notification 12/2025 Dated 01/04/2025)

RBI Master Circular- Prudential Norms on Income Recognition, Asset Classification  & Provisioning:  It updates the previous Master Circular, by consolidating all instructions and guidelines on income recognition, asset classification, and provisioning for advances issued by the RBI up to 31^st March 2025, applicable to all Scheduled Commercial Banks, excluding Regional Rural Banks (RRBs). (RBI Notification 13/2025 Dated 01/04/2025)

RBI Master Circular- Income Recognition, Asset Classification & Provisioning for UCBs: It updates the previous Master Circular, by consolidating all instructions and guidelines issued to Urban Cooperative Banks (UCBs) on income recognition, asset classification, and provisioning for advances up to 31^st March 2025. (RBI Notification 14/2025 Dated 01/04/2025)

RBI Master Circular- Bank Finance to NBFCs: It updates the previous Master Circular, by consolidating all instructions and guidelines relating to bank lending to NBFCs up to 31^st March 2025. (RBI Notification 15/2025 Dated 01/04/2025)

RBI Master Circular on Housing Finance: It updates the previous Master Circular, by consolidating all housing finance related instructions and guidelines issued by the RBI up to 31^st March 2025, applicable to all Scheduled Commercial Banks, excluding Regional Rural Banks (RRBs). (RBI Notification 16/2025 Dated 01/04/2025)

RBI Master Circular- Housing Finance for UCBs: It updates the previous Master Circular, by consolidating all instructions and guidelines issued to Urban Cooperative Banks (UCBs) regarding housing finance up to 31^st March 2025. (RBI Notification 17/2025 Dated 01/04/2025)

RBI Master Circular- Management of Advances for UCBs: It updates the previous Master Circular, by consolidating all instructions and guidelines issued to Urban Cooperative Banks (UCBs) regarding advances up to 31^st March 2025. (RBI Notification 18/2025 Dated 01/04/2025)

RBI Master Circular- Exposure Norms and Statutory / Other Restrictions for UCBs: It updates the previous Master Circular, by consolidating all instructions and guidelines issued to Urban Cooperative Banks (UCBs) up to 31^st March 2025. (RBI Notification 19/2025 Dated 01/04/2025)

Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs): The limits for FPI investment in debt instruments for the financial year 2025-26, i.e. in Government Securities (G-Secs), State Government Securities (SGSs), and corporate bonds remain unchanged at 6%, 2%, and 15%, respectively, of the outstanding stock of these securities. The Fully Accessible Route (FAR) will continue to govern investments in specified securities. For the fiscal year, the incremental G-Sec limit has been evenly split between the ‘General’ and ‘Long-term’ sub-categories. Meanwhile, all additional limits for SGSs have been allocated to the ‘General’ sub- category. It also specifies that FPIs can sell Credit Default Swaps (CDS) up to 5% of the total outstanding corporate bond stock. (RBI Notification 20/2025 Dated 03/04/2025)

RBI Master Direction on Currency Chest Transaction Reporting: The direction mandates that all currency chest transactions be reported through the CyM-CC portal by 7 PM on the same day. Exceptions apply for holidays and strikes, with alternative reporting mechanisms. Penal provisions include interest charges for delayed reporting, wrong reporting, and inclusion of ineligible amounts in chest balances. (RBI Master Directions Notification 130/2025 Dated 01/04/2025)

RBI Master Direction on Penalties for Banks on Customer Service Deficiencies: The directions outline penalties for bank branches and currency chests due to deficiencies in providing customer service. Penalties are imposed for irregularities such as shortages of notes and coins, detection of counterfeit or mutilated notes, non-compliance with operational guidelines (like CCTV functioning), violations of agreements with the RBI, and inadequate ATM cash replenishment. (RBI Master Directions Notification 131/2025 Dated 01/04/2025)

RBI Master Direction on Counterfeit Notes: The directions consolidates and updates existing guidelines, instructions, and directives related to counterfeit note detection, reporting and monitoring. (RBI Master Directions Notification 132/2025 Dated 01/04/2025)

RBI Master Direction for Exchange of Notes and Coins: The directions mandate that all bank branches in India exchange soiled, mutilated, or imperfect notes and coins, ensuring these services are available to the public, including non- customers. Banks are to accept small denomination notes and coins, with the exception of coins below 25 paise, which are no longer legal tender. It also provides a procedure for the exchange of notes in bulk, and for resolving grievances through an ombudsman in case of disputes. (RBI Master Directions Notification 133/2025 Dated 01/04/2025)

RBI Master Direction for Interest Rate on Deposits: The Reserve Bank of India (Interest Rate on Deposits) Directions, 2025 consolidates all instructions related to interest rates on deposits for all banks operating in India, so as to streamline regulatory guidance for banks regarding deposit interest rates, ensuring uniformity and clarity. (RBI Master Directions Notification 134/2025 Dated 01/04/2025)

Draft FEMA Rules on Foreign Trade: RBI released revised draft Regulations and Directions under the Foreign Exchange Management Act (FEMA) concerning the export and import of goods and services.

— The key provisions include mandatory submission of the Export Declaration Form (EDF), timelines for realisation of export proceeds (within nine months), and conditions for reduction in export realisation. It also outlines protocols for set-offs between export receivables and import payables, third-party payments, and advance payments for trade. Importers must repatriate advances if imports are not materialised, especially when outstanding exceeds ₹25 crore. Similarly, exporters with unrealised proceeds beyond two years and above the ₹25 crore threshold can proceed only against full advance or irrevocable letters of credit.

— Authorised Dealers are tasked with verifying documents, ensuring timely entries in the Export and Import Data Processing and Monitoring Systems (EDPMS and IDPMS), and monitoring the genuineness of transactions. The draft also introduces structured mechanisms for handling delayed payments, advance remittances, and reporting obligations. The stakeholders comments/ suggestions are invited. (RBI Draft Regulations and Directions Dated 04/04/2025, Draft Notification)

RBI Launches Verified WhatsApp Channel for Public Awareness: RBI has launched a verified WhatsApp channel to enhance public awareness of financial information. The WhatsApp channel aims to provide accessible and direct financial information to users across India, strengthening trust in the digital financial system. Users can access the channel by scanning a provided QR code. It expands ‘RBI Kehta Hai’ campaign, which already utilizes text messages, television, and digital ads. (RBI Press Release Dated 04/04/2025)

J. Miscellaneous

HC, Cheque amount mismatch not invalidate trial under Negotiable Instrument Act: Case of Nitesh Yadav vs State NCT of Delhi, HC Delhi Judgement Dated 10th March 2025. High Court ruled that a discrepancy between the numerical and written amounts on a cheque does not automatically render it invalid and must be examined during trial. (HC Delhi Judgement Dated 10/03/2025)

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Compiled by: CMA Yash Paul Bhola, MBA, ICWAI, 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)