During the week of 1st–7th December 2025, key regulatory updates were issued across Income Tax, GST, RBI, and other financial and corporate sectors. Income Tax notifications granted exemptions under Section 10(46A) to development authorities and boards, and Section 80G deductions for temple renovations, enhancing donor benefits. In GST, the Manipur GST Amendment Bill streamlined tax slabs, while advisories clarified GSTR-9/9C reporting, Table 3.2 filings, auto-suspension for missing bank details, and landmark rulings on hostel exemptions and cross-LoC trade. RBI introduced amendments for credit reporting across banks and financial institutions, revised provisioning and capital adequacy norms, cut the repo rate by 25 bps, and reduced the bank rate, impacting liquidity and penal interest. Miscellaneous rulings included the SC quashing FIRs for mere loan defaults and the HC protecting suggestive trademarks. Collectively, these updates enhance compliance clarity, streamline tax and banking procedures, and provide guidance on exemptions and financial prudence.
Notifications & Circulars issued during week (1st – 7thDec 2025)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Deduction under section 80G allowed for Shree Balakrishna Lalji Temple Renovation: Shree Balakrishna Lalji & other deities temple located in Bhuvneshwar, Mumbai, and managed by Mata Mandir Trust, has been notified, as a place of historic importance and public worship renowned across Maharashtra and Gujarat under Section 80G(2)(b) of Income Tax Act. It enables donors to claim deductions for contributions made specifically towards the renovation or repair of the temple. The approval is strictly restricted to donations up to Rs 50 crore and remains valid until the sanctioned amount is fully collected or until 31st March 2030, whichever occurs earlier.
(Link: Income Tax Notification 166/2025 Dated 02/12/2025)
Exemptions to Jalandhar Development Authority: Jalandhar Development Authority, an authority constituted under the Punjab Regional and Town Planning and Development Act 1995, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Act.
(Link: Income Tax Notification 167/2025 Dated 04/12/2025)
Exemptions to Ajmer Development Authority: Ajmer Development Authority, an authority constituted under the Ajmer Development Authority Act 2013, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Act.
(Link: Income Tax Notification 168/2025 Dated 04/12/2025)
Exemptions to Tamil Nadu Pollution Control Board: Tamil Nadu Pollution Control Board, a board constituted under the Water (Prevention and Control of Pollution) Act 1974 and the Air (Prevention and Control of Pollution) Act, 1981 by the State Government of Tamil Nadu, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Act.
(Link: Income Tax Notification 169/2025 Dated 04/12/2025)
B. GST
Parliament passed the Manipur GST Amendment Bill: It will replace an earlier ordinance issued during President Rule to align Manipur GST laws to implement the GST 2.0 reforms, streamlining tax slabs (mostly 5% & 18%) and enhancing compliance for better revenue and ease of doing business in the state.
(Link: Manipur GST Amendment Bill as passed on 02/12/2025)
Advisory, FAQs on Annual Return GSTR -9/9C for FY 2024-25: Additional list of Frequently Asked Question (FAQs) along with the response has been issued intended to assist the Taxpayer in better understanding and reporting of values in various Tables of GSTR-9/9C. Ineligible ITC availed for FY 2023-24 but claimed or reversed in FY 2024-25 must be reported in Table 6A1 of GSTR-9, while reversals pertaining to FY 2023-24 need not be included elsewhere. Table 12B of GSTR-9C may show mismatches if prior year ITC is booked in the current year, and explanations can be provided in Table 13. ITC received for FY 2023-24 but claimed in FY 2024-25 is to be reported in Table 6A1, with unreconciled differences explained. Non-GST purchases are not reported in GSTR-9, and Table 4G1 applies only to e-commerce operators under section 9(5) of the CGST Act.
(Link: GSTN Advisory Dated 04/12/2025) (FAQs)
Advisory on reporting values in Table 3.2 of GSTR-3B: The advisory clarifies regarding reporting values in Table 3.2 of Form GSTR-3B, relating to inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders. From November tax period onward, the values auto-populated in Table 3.2 based on GSTR-1, GSTR-1A ond IFF filings will become non-editable, and taxpayers must file GSTR-3B using only the system generated figures. If corrections are needed, amendments must be made through Form GSTR-1A for the same tax period, which will automatically update Table 3.2 in real time. Form GSTR-1A can be submitted any time after GSTR-1 and up to the moment of filing GSTR-3B.
(Link: GSTN Advisory Dated 05/12/2025)
Advisory, Auto Suspension of GST Registration due to Non-Furnishing of Bank Account Details: Taxpayers, other than those registered under TCS, TDS, or on a suo motu basis, must provide their bank account details within 30 days of registration or before filing GSTR-1 or IFF, whichever occurs earlier. If these details are not submitted within the prescribed time, the system will automatically suspend the taxpayer’s GST registration. Once the details are furnished, the system will automatically drop cancellation proceedings. Alternatively, taxpayers may manually initiate the dropping process if it does not occur the same day.
(Link: GSTN Advisory Dated 05/12/2025)
SC, GST Exemption allowed as Hostel Use qualifies as Residential Dwelling: Case of State of Karnataka vs Taghar Vasudeva Ambrish, SC Judgement Dated 4th December 2025. The apex court ruled that renting a residential property for use as a long-term hostel/PG for students/professionals qualifies for GST exemption, even if leased to a company, as the core ‘residential dwelling’ use and the ultimate occupants ‘residential purpose’ (eating, sleeping) fulfils the exemption criteria (Entry 13). It overrules revenue attempt to deny it based on commercial operation or a direct lessee’s status. The ruling clarifies that exemption hinges on the nature of the property and end-use for residence.
HC, Cross-LoC Barter Trade with PoK is Intra-State Supply: Case of New Gee Enn & Sons vs Union of India, HC J&K Judgement Dated 27th November 2025. The court ruled that trade between J&K and PoK (Pakistan occupied Kashmir) is Intra-State supply, under GST Act, since PoK Is part of J&K Territory. Traders engaged in cross-LoC trade should treat supplies as intra-state under GST, and respond accordingly if they receive notices.
AAR, GST Liability arises due to Non-Monetary Gifts/ Perquisites/ Tour packages because TDS is Deducted: Case of TVL Kartik, AAR Tamil Nadu Ruling Dated 17th November 2025. AAR ruled that non-monetary benefits such as gifts, perquisites, and tour packages received by a dealer from a manufacturer amount to consideration for “support services” and are exigible to Goods and Service Tax (GST).
AAR, GST Exemption allowed on Godown Rent due to storage of Agricultural Produce: Case of Leena Modern Rice Mill, AAR Tamil Nadu Ruling Dated 17th November 2025. AAR ruled that the rent received for a godown used exclusively for the storage of paddy is exempt from Goods and Services Tax (GST).
AAR, Quick Lime (90%) and Hydrated Lime (85-95%) attract 5% GST: Case of Kaycee Industrial Chemicals Private Ltd, AAR Tamil Nadu Ruling Dated 17th November 2025. AAR ruled that Quick Lime and Hydrated Lime containing impurities and having a purity below 98% were classifiable under HSN 2522 as industrial lime and attract a Goods and Services Tax (GST) of 5%.
AAR, GST Not applicable on Escrow Transfers of Freight Payments: Case of B2B Trucks Private Limited, AAR Tamil Nadu Ruling Dated 17th November 2025. The company acts as a digital facilitator and uses a specific bank account to temporarily hold funds transferred from shippers to be paid to carriers. They do not take responsibility for the physical movement of goods. AAR clarified that the amounts held in this current/escrow account, which are purely for the purpose of forwarding payment to the actual carriers, do not constitute “supply” or “consideration” for B2B Trucks Private Limited’s service and are therefore not subject to GST.
AAR, GST applies on Lease Property used for Commercial Accommodation: Case of Goldie Ashokbhai Shah, AAR Gujarat Ruling Dated 19th November 2025. AAR ruled that the service of renting of Residential building by the applicant to the lessee, an unregistered person, to use it as the residential accommodation for the students and the working professional is subject to GST.
AAR, GST Payable only on Worker Canteen Deductions, not Employee Deductions: Case of Zydus Hospira Oncology Private Limited, AAR Gujarat Ruling Dated 19th November 2025. AAR ruled held that recovery of subsidized canteen charges from full-time employees does not amount to a supply under Section 7 of the CGST Act, as it is covered by Schedule III and clarified by Circular 172/04/2022. Therefore, No GST is payable on the portion recovered from employees. However, recovery of subsidized canteen charges from contractual workers amounts to a taxable supply. GST is payable on the portion recovered from contractual workers.
AAR, PVC Raincoats classified under Plastics, GST rate at 18%: Case of Pradeepkuar Gaurishankar Trivedi, AAR Gujarat Ruling Dated 24th November 2025. AAR ruled that PVC raincoats attract 18% GST under Entry 111 of Schedule III of Notification No. 1/2017 (Rate), and not the 5% rate applicable to apparel.
C. Central Excise
Parliament passed Central Excise Amendment Bill: Central excise duties on many items were repealed with the introduction of GST in 2017, except for some items such as tobacco and tobacco products, liquor, petroleum. The amendments seek to levy a higher excise duty on tobacco and related products once GST compensation cess ends to keep taxes on them at existing level.
(Link: Central Excise Amendment Bill as passed on 04/12/2025)
D. Custom Duty
CVD on Tempered Glass continued to safeguard Local Industry: The countervailing duty (CVD) on imports of Textured Tempered Glass originating in or exported from Malaysia has been extended to prevent injury to the domestic industry. The CVD was originally imposed by h Notification 3/2021 (CVD) dated 9th March 2021. The existing duty will remain in force until 8th June 2026, unless altered earlier.
(Link: Customs Notification 07/2025 (CVD) Dated 07/12/2025)
Collection of anti-dumping duty on imports of Titanium Dioxide originating in or exported from China: The High Court had quashed Notification No. 12/2025 (ADD) dated 10th May 2025, which had imposed anti-dumping duty on titanium dioxide imported from or originating in China PR. In response, CBIC has directed to immediately stop the collection of this anti-dumping duty. The instruction clarifies that no further anti-dumping duty should be levied on such imports.
(Link: Customs Instruction 33/2025 Dated 05/12/2025)
E. Directorate General of Foreign Trade (DGFT)
Ahmedabad Airport permitted for Personal Carriage of Gems & Jewellery: The amendments expand the list of airports permitted for personal carriage of gems and jewellery parcels for both export and import. Under the revised Para 4.87(a), foreign-bound passengers from EOU/SEZ units and DTA firms may now carry export parcels through Ahmedabad Airport in addition to the previously listed airports. Similarly, the amendment to Para 4.88 allows personal carriage of import parcels by Indian importers or foreign nationals into EOU/SEZ units and DTA firms through Ahmedabad Airport.
(DGFT Public Notice 33/2025 Dated 01/12/2025)
Revision of LOP/LOI validity rules to streamline Extension Process: The amendment relates to extensions of the validity period of Letters of Permission/Letters of Intent (LOP/LOI) for units such as EOUs, BTPs, EHTPs, and STPs. Under the revised framework, once a unit commences production, the validity of its LOP/LOI may be extended for up to five years at a time as per Para 6.01(c) of the HBP. Additionally, the initial two-year validity period may be extended by one more year for justified reasons, except where specific restrictions apply, such as for oil refinery projects.
(DGFT Public Notice 34/2025 Dated 01/12/2025)
F. Securities and Exchange Board of India (SEBI)
Amendments to SEBI Foreign Venture Capital Investors Regulations: The amendments introduce provisions for a new category called SWAGAT-FI (Single Window Automatic and Generalised Access for Trusted Foreign Investor). It exempts such investors from certain sub-regulations, and allows renewal fees to be paid every ten years from the eleventh year of registration. Additionally, the standard investment limits of 66.67% and 33.33% under the principal regulations will not apply to SWAGAT-FIs.
(Link: SEBI Notification Dated 01/12/2025)
Amendments to SEBI Foreign Portfolio Investors Regulations: The amendments introduce the concept of “Single Window Automatic and Generalised Access for Trusted Foreign Investor” (SWAGAT-FI), covering government related investors and public retail funds, subject to conditions specified by SEBI. Registration fees for SWAGAT-FI are now payable in advance for ten-year blocks. Other changes clarify conditions for registration, swap ratios, and compliance exemptions for SWAGAT-FI.
(Link: SEBI Notification Dated 01/12/2025)
Amendments to SEBI Intermediaries Regulations: The amendment inserts a new sub-regulation (1)(da), specifying additional grounds on which a person may be deemed “not fit and proper” to act as an intermediary. It covers three key compliance failures i.e. not meeting prescribed minimum net worth or liquid net worth requirements, failing to achieve the mandated minimum revenue from permitted activities, and not transferring specified activities to a separate business unit as required by SEBI.
(Link: SEBI Notification Dated 03/12/2025)
Amendments to SEBI Share Based Employee Benefits and Sweat Equity Regulations: The amendments relates to ESOPs, share-based benefits, and sweat equity issuances mainly focused on valuation standards. The definition of “valuer” in Regulation 2 has been updated to align fully with Section 247 of the Companies Act, thereby shifting valuation responsibilities from merchant bankers to independent registered valuers. Regulation 34 has been amended to mandate that all new valuations be conducted only by registered valuers.
(Link: SEBI Notification Dated 03/12/2025)
Amendments to SEBI Substantial Acquisition of Shares and Takeovers Regulations: The amendment inserts a new definition of “valuer” aligned with Section 247 of the Companies Act, and replaces the role of acquirers and managers in determining valuation with an “independent registered valuer.” It mandates that valuation of shares must now be conducted by independent registered valuers, while providing a nine-month transition period for ongoing valuation assignments initiated before the amendment takes effect.
(Link: SEBI Notification Dated 03/12/2025)
Amendments to SEBI Merchant Bankers Regulations: The amendment include redefining the “principal officer” role, revising application and registration procedures, introducing minimum net worth and liquid net worth requirements for Category I and II merchant bankers, and mandating minimum revenue generation. It prohibits merchant bankers from managing their own issues or issues where key personnel hold significant shares. It also emphasizes ring-fencing net worth, preservation of accounts for eight years, data localization, and compliance officer responsibilities, including reporting non- compliance to SEBI.
(Link: SEBI Notification Dated 03/12/2025)
Amendments to SEBI Substitution of Registered Post with Speed Post Regulations: The amendments replace references to “registered post” or “Registered A.D.” with “Speed Post with Registration” or “Speed Post with Registration with Acknowledgment Due,” ensuring uniformity in modes of official communication. Specific provisions and schedules across these regulations are updated to require Speed Post-based communication for notices, submissions, and related procedural requirements.
(Link: SEBI Notification Dated 03/12/2025)
Consultation Paper on Review of existing position limits for Trading Members in Equity Derivatives Segment: Currently, client-level limits for index options use Future Equivalent (FutEq) or delta- adjusted values, while TM limits are calculated using notional contract value, creating inconsistencies. SEBI proposes recalculating TM limits for index options using FutEq, with an additional slab-based absolute limit depending on market-wide Open Interest (OI), ensuring TMs cannot capture a disproportionate share of the market. For index futures, limits remain unchanged as delta equals one. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 04/12/2025)
Consultation Paper on Review of Master Circular for Foreign Portfolio Investors (FPIs) and Designated Depository Participants (DDPs): The paper consolidates regulatory guidelines issued since the last Master Circular of 30th May 2024, covering registration, onboarding, KYC, ongoing compliance, investment conditions, and Offshore Derivatives Instruments. It aims to simplify the language, remove duplications, and eliminate redundant or transitory provisions to enhance ease of doing business and compliance. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 05/12/2025)
G. Ministry of Corporate Affairs (MCA)
Amendments to Companies Specification of Definition Details Rules: The significantly increased the financial thresholds for classifying a “Small Company,” raising the paid-up capital limit to Rs 10 Crores (from Rs 4 Crore) and the turnover limit to Rs 100 Crores (from Rs 40 Crore), to reduce compliance burdens and encourage business growth by bringing more companies under beneficial, simplified governance rules.
(Link: MCA Notification Dated 01/12/2025)
H. Insolvency and Bankruptcy Board of India (IBBI)
SC, Development agreement which stood terminated prior to CIRP do not constitute asset of Corporate Debtor: Case of AA Estates Private Limited vs Kher Nagar Cooperative Housing Society Limited, SC Judgement Dated 28th November 2025. The apex court held that development right of a defaulting developer do not constitute ‘asset’ or ‘property’ of corporate debtor. Further, since the said development agreement stood
terminated prior to initiation of CIRP no subsisting or enforceable right survived in favour of corporate debtor.
NCLAT, Appeal by shareholder not maintained as shareholder is not person aggrieved under section 61 of IBC: Case of Peninsula Holdings and Investments Pvt Ltd vs JM Financial Credit Solutions Ltd, NCLAT Delhi Judgement Dated 29th October 2025. The appellate tribunal ruled that a shareholder is not a “person aggrieved” under Section 61 of the IBC and therefore lacks the standing (locus standi) to challenge the admission of a corporate debtor into the Corporate Insolvency Resolution Process (CIRP).
NCLAT, Claim in CIRP rightly rejected since payments for flats to Corporate Debtor Not Established: Case of Sneha Kore vs Arun Kapoor, NCLAT Delhi Judgement Dated 17th September 2025. The appellate tribunal held that rejection of claim in CIRP of corporate debtor justified since Appellants failed to establish the crucial aspect of transfer of monies to the bank account of Corporate Debtor for purchase of flats.
NCLAT, Prospective Resolution Applicant does not have vested right to challenge Approved Resolution Plan: Case of Astral Agro Ventures vs Vakati Balasubramaniyam Reddy, NCLAT Delhi Judgement Dated 18th November 2025. The appellate tribunal held that Prospective Resolution Applicant or unsuccessful Resolution Applicant does not have vested right to challenge a resolution process or an approved resolution plan.
NCLAT, Gujarat State Tax Department is secured creditor hence direction to RP to release amount Justified: Case of Cosmos Coop Bank Ltd vs Kailash T Shah, NCLAT Delhi Judgement Dated 13th November 2025. The appellate tribunal held that direction to resolution professional to release the amount to Gujarat State Tax Department treating it as secured creditor under Section 48 of the Gujarat Value Added Tax Act, is justifiable as NCLT is obliged to apply decision of Supreme Court.
I. Reserve Bank of India (RBI)
Compliance with Know Your Customer (KYC) norms: RBI has repealed the 2016 Master Direction on KYC and replaced it with the new “Reserve Bank of India (Commercial Banks– Know Your Customer) Directions, 2025”.. All Payment System Providers and Participants must now align their KYC, AML, and CFT compliance processes with the updated 2025 framework. The changes include updated references to the new KYC Directions, revisions to digital KYC and V-CIP provisions, and harmonized requirements for OVDs, mandatory documents, and due diligence procedures.
(Link: RBI Notification 101/2025 Dated 28/11/2025)
Liberalised Remittance Scheme (LRS), Submission of ‘LRS Daily Return’ by Authorised Dealers: Presently, only AD Category-I banks submit daily LRS returns on the Centralised Information Management System (CIMS) and include LRS transactions of their attached AD Category-II banks and Full Fledged Money Changers (FFMCs). From January 2026 onwards, AD Category-II banks/entities and FFMCs will directly submit their own LRS daily returns, allowing them to monitor the cumulative PAN-wise LRS remittances of residents before approving new transactions.
(Link: RBI Notification 102/2025 Dated 03/12/2025)
Amendment to RBI Commercial Banks- Responsible Business Conduct Directions: It introduce major changes to the Basic Savings Bank Deposit (BSBD) framework. The amendments redefine “Digital Payment Transaction” and overhaul paragraphs 86 to 92, mandating banks to offer BSBD accounts as a standard service with essential facilities i.e. cash deposits, unlimited monthly deposits, ATM-cum-debit card without annual fees, a 25 leaf cheque book, internet/mobile banking, free passbook or e- statements, and four free withdrawals per month. Banks must not impose minimum balance requirements and must allow customers to convert existing accounts into BSBD accounts within seven days.
(Link: RBI Notification 103/2025 Dated 04/12/2025)
Amendment to RBI Small Finance Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 104/2025 Dated 04/12/2025)
Amendment to RBI Payment Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 105/2025 Dated 04/12/2025)
Amendment to RBI Local Area Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 106/2025 Dated 04/12/2025)
Amendment to RBI Regional Rural Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 107/2025 Dated 04/12/2025)
Amendment to RBI Urban Coop Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 108/2025 Dated 04/12/2025)
Amendment to RBI Rural Coop Banks- Responsible Business Conduct Directions:
Similar amendments refer above brief for notification 103/2025 dated 04/12/2025.
(Link: RBI Notification 109/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Credit Information Reporting Directions: It update existing directions to ensure systematic reporting by Commercial Banks to Credit Information Companies (CICs). Credit institutions (CIs) must submit credit information on four reference dates i.e. 9th, 16th, 23rd, and the last day of the month, with full-file submissions by the 5th of the following month, including active accounts and closed accounts since the last report. The directions also mandate reporting of Central KYC (CKYC) numbers and prompt correction of rejected data.
(Link: RBI Notification 110/2025 Dated 04/12/2025)
Amendment to RBI Small Finance Banks- Credit Information Reporting Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 111/2025 Dated 04/12/2025)
Amendment to RBI Local Area Banks- Credit Information Reporting Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 112/2025 Dated 04/12/2025)
Amendment to RBI Regional Rural Banks- Credit Information Reporting Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 113/2025 Dated 04/12/2025)
Amendment to RBI Urban Coop Banks- Credit Information Reporting Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 114/2025 Dated 04/12/2025)
Amendment to RBI Rural Coop Banks- Credit Information Reporting Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 115/2025 Dated 04/12/2025)
Amendment to RBI All India Financial Institutions- Credit Information Reporting Directions: Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 116/2025 Dated 04/12/2025)
Amendment to RBI Non-Banking Financial Companies- Credit Information Reporting Directions: Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 117/2025 Dated 04/12/2025)
Amendment to RBI Asset Reconstruction Companies- Credit Information Reporting Directions: Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 118/2025 Dated 04/12/2025)
Amendment to RBI Credit Information Companies Directions:
Similar amendments refer above brief for notification 110/2025 dated 04/12/2025.
(Link: RBI Notification 119/2025 Dated 04/12/2025)
RBI Urban Co-operative Banks- Licensing, Scheduling and Regulatory Classification Repeal Guidelines: The previous Guidelines issued on 28th November 28, 2025 has been repealed and simultaneously replaced with a new set issued on the same day.
(Link: RBI Notification 120/2025 Dated 04/12/2025)
RBI Urban Coop Banks- Branch Authorisation Repeal Directions: The previous Directions issued on 28th November 28, 2025 has been repealed and simultaneously replaced with a new set issued on the same day.
(Link: RBI Notification 121/2025 Dated 04/12/2025)
RBI Rural Coop Banks- Branch Authorisation Repeal Directions: The previous Directions issued on 28th November 28, 2025 has been repealed and simultaneously replaced with a new set issued on the same day.
(Link: RBI Notification 122/2025 Dated 04/12/2025)
Amendment to RBI Rural Coop Banks- Miscellaneous Directions: The amended provisions mandate that all banks prominently display their full registered name, matching their Certificate of Registration and RBI licence, on all stationery, advertisements, websites, apps, and publicity material. Moreover, new norms have been prescribed for State Co-operative Banks seeking inclusion in the Second Schedule to the RBI Act, including higher CRAR requirements, absence of supervisory concerns, and submission of financial and governance documents through NABARD.
(Link: RBI Notification 123/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Credit Facilities Directions: The amendment introduce comprehensive changes to Gold Metal Loans (GML). It inserts definitions for GML, distinguishing between GMS-linked GML under the Gold Monetization Scheme, 2015, and import- linked GML sourced from imported gold. It also prescribe prudential guidelines for lending, risk management, monitoring, and repayment of GML to jewellery industry borrowers, including exporters and MMTC Limited. Banks must lay down lending policies, conduct due diligence, comply with capital adequacy requirements, and value GML in INR based on daily LBMA Gold rates.
(Link: RBI Notification 124/2025 Dated 04/12/2025)
Amendment to RBI Small Finance Banks- Credit Facilities Directions: The amendment introduce comprehensive changes to Gold Metal Loans (GML). It inserts definitions for GML, distinguishing between GMS-linked GML under the Gold Monetization Scheme, 2015, and import- linked GML sourced from imported gold. It also prescribe prudential guidelines for lending, risk management, monitoring, and repayment of GML to jewellery industry borrowers, including exporters and MMTC Limited. Banks must lay down lending policies, conduct due diligence, comply with capital adequacy requirements, and value GML in INR based on daily LBMA Gold rates.
(Link: RBI Notification 125/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Concentration Risk Management Directions: The key modifications include redefining “eligible capital base” to incorporate Tier I capital infusions and accrued profits, clarifying that branches in other jurisdictions are excluded from intra-group exposure limits except for proprietary derivatives, and enhancing board-level policies for monitoring ultra-large borrowers. It revise large exposures framework (LEF) norms, specifying exposure limits for Indian branches of foreign G-SIBs and non-G-SIBs, and mandate gross calculation of exposures cleared through central counterparties.
(Link: RBI Notification 126/2025 Dated 04/12/2025)
Amendment to RBI Small Finance Banks- Concentration Risk Management Directions: It emphasizes that small finance banks must have robust policies to manage concentration risk arising from exposures to single counterparties, interconnected groups, specific sectors, and ultra-large borrowers with substantial leverage. Banks may define “ultra-large borrowers” using their own criteria but must consider total borrowings from the banking system when assessing credit risk.
(Link: RBI Notification 127/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Income Recognition, Asset Classification and Provisioning Directions: The key change pertains to Paragraph 117 under Chapter IV relating to Provisioning Norms, which has been deleted. As a result, banks are now permitted to reverse provisions previously made or transfer them to the General Reserve. It aims to provide flexibility to banks in managing their provisioning practices while maintaining financial prudence.
(Link: RBI Notification 128/2025 Dated 04/12/2025)
Amendment to RBI Small Finance Banks- Income Recognition, Asset Classification and Provisioning Directions: The key change pertains to Paragraph 113 under Chapter IV relating to Provisioning Norms, which has been deleted. As a result, banks are now permitted to reverse provisions previously made or transfer them to the General Reserve. It aims to provide flexibility to banks in managing their provisioning practices while maintaining financial prudence.
(Link: RBI Notification 129/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Prudential Norms on Capital Adequacy Directions: The key amendment is the deletion of Paragraph 78 under Chapter IV relating to Risk Weighted Assets (RWAs), which provides the framework for calculating RWAs for commercial banks. It aims to streamline prudential norms for capital adequacy and aligns capital computation methodology with updated risk management practices.
(Link: RBI Notification 130/2025 Dated 04/12/2025)
Amendment to RBI Commercial Banks- Prudential Norms on Capital Adequacy Directions: The key amendment is the deletion of Paragraph 68 under Chapter IV relating to Risk Weighted Assets (RWAs), which provides the framework for calculating RWAs for commercial banks. It aims to streamline prudential norms for capital adequacy and aligns capital computation methodology with updated risk management practices.
(Link: RBI Notification 131/2025 Dated 04/12/2025)
Liquidity Adjustment Facility- Change in rates: MPC has decided to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.50 per cent to 5.25 per cent with immediate effect. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.00 per cent and 5.50 per cent respectively.
(Link: RBI Notification 132/2025 dated 05/12/2025)
Standing Liquidity Facility for Primary Dealers: The Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) would be available at the revised repo rate of 5.25 per cent.
(Link: RBI Notification 133/2025 dated 05/12/2025)
Penal Interest on shortfall in CRR and SLR requirements- Change in Bank Rate: The Bank Rate has been revised downwards by 25 basis points from 5.75 per cent to 5.50 per cent. Accordingly, all penal interest rates on shortfall in CRR and SLR requirements, which are specifically linked to the Bank Rate, also stands revised. The revised penal interest rates shall be Bank Rate plus 3.0 percentage points (8.50 per cent) or Bank Rate plus 5.0 percentage points (10.50 per cent) depending on duration of shortfall.
(Link: RBI Notification 134/2025 dated 05/12/2025)
Amendment to RBI Commercial Banks- Undertaking of Financial Services Directions: The amended provisions specify that core banking functions and acceptance of time deposits must be undertaken departmentally, while mutual fund, insurance, pension, and portfolio management services must be conducted via group entities. The directions impose prudential investment limits i.e. a single bank may invest up to 10% in any entity, and aggregate investments, including group and overseas entities, may not exceed 20%, with prior approval required for higher exposures. Specific restrictions on Asset Reconstruction Companies, Alternative Investment Funds, and Real Estate/Infrastructure Investment Trusts have been provided.
(Link: RBI Notification 135/2025 Dated 05/12/2025)
Amendment to RBI Small Finance Banks- Undertaking of Financial Services Directions: The amendment specify that banks can act as agents for regulated third-party products but cannot handle referral processes directly. It clarifies that certain financial services, such as mutual funds, insurance, pension fund management, investment advisory, portfolio management, and broking, must be undertaken through a group entity under a Non-Operating Financial Holding Company (NOFHC), not departmentally. It also revises equity investment limits for banks, including individual and aggregate investment caps, investment conditions, and reporting requirements.
(Link: RBI Notification 136/2025 Dated 05/12/2025)
Amendment to RBI Payment Banks- Undertaking of Financial Services Directions: The amendments allow banks to act as agents of third-party product or service providers (TPPSPs) for regulated financial products, including insurance, mutual funds, and pensions, without assuming risk. It outlines responsibilities such as marketing, sales, customer support, and after-sale services. Moreover, Referral Services permit Payments Banks to refer customers to TPPSPs without involvement in product processes or branding, ensuring operational separation and compliance.
(Link: RBI Notification 137/2025 Dated 05/12/2025)
Amendment to Non-Banking Finance Companies- Undertaking of Financial Services Directions: The amendment insert new paragraph 60A, which mandates that NBFCs forming part of a Scheduled Commercial Bank group must also comply with the Commercial Banks– Undertaking of Financial Services Directions, 2025 whenever both the NBFC and the parent bank engage in the same business activity. This ensures uniform regulatory treatment, prevents regulatory arbitrage, and strengthens governance and oversight across bank-led financial conglomerates.
(Link: RBI Notification 138/2025 Dated 05/12/2025)
Amendment to Non-Operative Financial Holding Company (NOFHC) Directions: The amendments replace paragraphs 44– 47, reiterating that all activities permitted to banks under Banking Regulation Act, must be undertaken directly by the bank. Specialized activities, such as mutual funds, insurance, pension fund management, investment advisory, portfolio management, and broking, must be conducted only through subsidiaries, joint ventures, or associates. NOFHCs are not required to seek prior RBI approval for these specified activities, but must notify the RBI within 15 days of board resolution.
(Link: RBI Notification 139/2025 Dated 05/12/2025)
Withdrawal of Rs 2000 Denomination Banknotes Status: The Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 denomination banknotes from circulation vide Press Release dated 19th May 2023. These notes can be exchanged/ deposited/ send through India Post from any post office in the country, to any of the 19 RBI Issue Offices for credit to their bank accounts in India. The ₹2000 banknotes continue to be legal tender. The total value of Rs 2000 banknotes in circulation, which amounted to Rs 3.56 lakh crore, has declined to Rs 5743 crore as at the close of business on 29th November 2025. Thus, 98.39% of the banknotes has since been returned.
(Link: RBI Press Release Dated 01/12/2025)
J. Miscellaneous
SC, FIR set aside because loan default lacked Entrustment: Case of Sunil Sharma vs Hero Fincorp Limited, SC Judgement Dated 12th August 2025. The apex court ruled that mere failure to repay loan in a commercial transaction is a civil liability, not a criminal offense, quashing criminal proceedings (FIR) for criminal breach of trust (Section 406 IPC) as an abuse of process, highlighting that dishonest intention (mens rea) is essential for criminal liability, which was not proven.
HC, Mark ‘SoEasy’ being suggestive in nature is liable to be protected under Trade Marks: Case of Ashim Kumar Ghosh vs Registrar of Trade Marks, HC Delhi Judgement Dated 24th November 2025. The court held that the mark ‘SoEasy’ for Hindi language learning is suggestive in nature and it is settled law that suggestive Trade Marks are liable to be protected under the Trade Marks Act, 1999. Accordingly, appeal is allowed
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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)
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