Regulatory Update: During 3–9 August 2026, notifications, circulars, rulings, bills and draft proposals were issued across Income Tax, GST, Central Excise, Customs, DGFT, SEBI, IBBI and RBI. Income Tax notifications granted or extended exemptions under sections 11 and 10(46) to specified authorities and bodies, while approval was granted to the Centre for Incubation Innovation Research and Consultancy, Bengaluru for scientific research under section 45(3)(b) read with rule 35 of the Income Tax Act 2025. The Taxation and Other Laws Amendment Bill 2026 proposed amendments concerning eligible investment funds, exemptions, electronic payment modes and surcharge provisions. GST developments included coordination with State Mining Authorities, AAR classifications and rates, and a Delhi HC ruling on retrospective application of the 10% pre-deposit requirement. Central Excise revised RIC and SAED rates; Customs imposed anti-dumping duty on Phthalic Anhydride, prescribed an FPO clearance SOP and extended television-set compliance timelines. DGFT introduced and operationalised inventory-based cross-border e-commerce procedures, extended export-related timelines and updated schemes. SEBI extended PaRRVA enrolment and issued consultation papers. RBI amended priority-sector lending and responsible business conduct directions and proposed frameworks on CVA, capital adequacy, NBFC credit, rural co-operative banks and UCB licensing. Several Supreme Court rulings also addressed arbitration, retrospective judgments, cheque-bounce presumptions, insolvency moratoriums and limitation.
Notifications & Circulars issued during week (3rd – 9th Aug 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, MCA, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Odisha Joint Entrance Examination Committee notified for section 11 Exemption: Odisha Joint Entrance Examination Committee, a body established by Government of Odisha, has been notified under section 11 for exemption on its income from Examination fees collected from candidates, Counselling and application processing fees, and Interest on bank deposits.
(Link: Income Tax Notification 110/2026 Dated 04/08/2026)
Odisha Joint Entrance Examination Committee notified for section 10(46) Exemption for FYs 2025-26 under Income Tax Act 1961: Odisha Joint Entrance Examination Committee a body established by Government of Odisha, has been notified under section 10(46) for exemption on its income from Examination fees collected from candidates, Counselling and application processing fees, and Interest on bank deposits.
(Link: Income Tax Notification 109/2026 Dated 04/08/2026)
Noida Special Economic Zone Authority notified for section 11 Exemption: Noida Special Economic Zone Authority, an Authority constituted by the Government of India, has been notified under section 11 for exemption on its income from Lease Rent, Interest from banks, Receipts from I card and Permit fees, Allotment fees, Auction/ Bid amount, Transfer charges, Fees for approval of building plan, Site usage charges and Miscellaneous scrap/ waste.
(Link: Income Tax Notification 108/2026 Dated 04/08/2026)
Noida Special Economic Zone Authority notified for section 10(46) Exemption for FYs 2023-26 under Income Tax Act 1961: Noida Special Economic Zone Authority, an Authority constituted by the Government of India, has been notified under section 10(46) for exemption on its income from Lease Rent, Interest from banks, Receipts from I card and Permit fees, Allotment fees, Auction/ Bid amount, Transfer charges, Fees for approval of building plan, Site usage charges and Miscellaneous scrap/ waste.
(Link: Income Tax Notification 107/2026 Dated 04/08/2026)
Noida Special Economic Zone Authority notified for section 10(46) Exemption for FYs 2019-23 under Income Tax Act 1961: Noida Special Economic Zone Authority, an Authority constituted by the Government of India, has been notified under section 10(46) for exemption on its income from Lease Rent, Interest from banks, Receipts from I card and Permit fees, Allotment fees, Auction/ Bid amount, Transfer charges, Fees for approval of building plan, Site usage charges and Miscellaneous scrap/ waste.
(Link: Income Tax Notification 106/2026 Dated 04/08/2026)
District Legal Services Authority, Charkhi Dadri, notified for section 11 Exemption: District Legal Services Authority, Charkhi Dadri, an Authority constituted by the State Government of Haryana under the Legal Services Authorities Act 1987, has been notified under section 11 for exemption on its income from Grants from High Court, Central and State Authority, Grants or donations from Central or State Govt, Amounts received under order of court and Interest on bank deposits.
(Link: Income Tax Notification 105/2026 Dated 03/08/2026)
District Legal Services Authority, Charkhi Dadri notified for section 10(46) Exemption for FYs 2022-26 under Income Tax Act 1961: District Legal Services Authority, Charkhi Dadri, an Authority constituted by the State Government of Haryana under the Legal Services Authorities Act 1987, has been notified under section 10(46) for exemption on its income from Grants from High Court, Central and State Authority, Grants or donations from Central or State Govt, Amounts received under order of court and Interest on bank deposits.
(Link: Income Tax Notification 104/2026 Dated 03/08/2026)
Haryana State Board of Technical Education (HSBTE), Panchkula notified for section 10(46) Exemption for FYs 2023-24 under Income Tax Act 1961: Haryana State Board of Technical Education (HSBTE), Panchkula, a Board constituted by the State Government of Haryana under the Haryana Board of Technical Education Act 2008, has been notified under section 10(46) for exemption on its income from Grants from Central or State Govt, Fees, Royalties, Penalties, Bequests, Donations, Sale proceeds of securities,, Rents and profits from property, and Interest on bank deposits.
(Link: Income Tax Notification 103/2026 Dated 03/08/2026)
Centre for Incubation Innovation Research and Consultancy, Bengaluru gets Income Tax approval for Scientific Research: The Principal Chief Commissioner of Income Tax (Exemptions), has approved Centre for Incubation Innovation Research and Consultancy, Bengaluru for ‘Scientific Research’ under section 45(3)(b) read with rule 35 of Income Tax Act 2025, for a period of five years, starting from the Tax Year 2026-27. It will enable the Institute to receive certain benefits, related to its scientific research activities.
(Link: Income Tax PCCIT Notification 07/2026 Dated 06/08/2026)
The Taxation and Other Laws Amendment Bill 2026: It seeks to replace the Income-tax Amendment Ordinance 2026. It substitute Schedule I of the Income-tax Act, 2025 to revise conditions relating to eligible investment funds and eligible fund managers, extending and modifying certain tax exemptions under Schedule IV, including exemptions relating to Government securities, rough diamonds, electronic goods, and data centres, and amending Schedule V to omit a condition relating to dividend received by a business trust unit holder from a special purpose vehicle.
— It also amends section 10A of the Payment and Settlement Systems Act 2007 to refer to electronic payment modes notified by the Central Government. It also revises surcharge provisions under the Finance Act, 2026 by prescribing a 10% rate for every domestic company other than a special purpose vehicle and 25% for a domestic company that is a special purpose vehicle referred to in Schedule V.
(Link: Lok Sabha Bill Introduced Dated 04/08/026)
B. GST
Coordination with State Mining Authorities to Curb GST Evasion: The instruction direct coordination between CGST field formations and State Mining Authorities for sharing information relating to illegal mining and transportation of minerals. The Principal Chief Commissioners/Chief Commissioners of CGST Zones have been directed to designate a nodal officer, establish a mechanism for periodic information sharing with State Mining Authorities, analyse and disseminate intelligence to Commissionerates and DGGI formations where necessary, and hold periodic meetings with State Mining Authorities.
(Link: CBIC GST Instructions 01/2026 Dated 03/08/2026)
AAR, Laundry Soap Classifiable Under HSN 34011942, attracts 18% GST: Case of Chehar Industry Private Limited, AAR Gujarat Ruling Dated 4th August 2026. AAR ruled that laundry and washing soaps in bar or cake form fall under HSN code 34011942 and attract an 18% Goods and Services Tax (GST) rate.
AAR, Papad Khar Classifiable Under HSN 28362090, Attracts 18% GST: Case of Sardar Chemical Industries, AAR Gujarat Ruling Dated 4th August 2026. AAR ruled that Papad Khar is classified under HSN 28362090, and it attracts an 18% GST rate rather than a lower food-item or common salt tax rate.
AAR, GST @ 18% Applicable on Offset Printing Job Work on Paper: Case of Rashmiben Sanjaykumar Hemani, AAR Gujarat Ruling Dated 4th August 2026. The applicant is primarily engaged in providing offset printing services on Kraft Paper and Duplex Paper. AAR clarified that the tax outcome depends strictly on the nature of the job work. It ruled that an 18% GST rate is applicable on offset printing job work on paper when the process is classified under standard printing service contracts.
AAR, Ophthalmic Surgical Microscope Classifiable Under HSN 9018, Eligible for 5% GST: Case of Lab Medica Systems Private limited, AAR Gujarat Ruling Dated 4th August 2026. AAR ruled that GST @ 18% is applicable on the job work services (composite supply where offset printing is the principal supply) provided by the applicant on Kraft Paper and Duplex Paper supplied by the principal manufacturers in view of notification 11/2017 (Rate) dated 28th June 2017.
AAR, Ballast Loading into Railway Wagons Taxable at 18% GST Under SAC 996719: Case of SK Swamy and Company, AAR Karnataka Ruling Dated 29th July 2026. AAR ruled that loading railway ballast into wagons using a JCB is an independent cargo handling service classified under SAC 996719, attracting an 18% GST rate.
HC, Right to file an appeal and the governing legal conditions crystallize on the date the dispute (lis): Case of Gaurav Jain vs. Joint Commissioner CGST, HC Delhi Judgement Dated 31st July 2026. HC ruled that the mandatory 10% pre-deposit requirement for GST penalty-only appeals under Section 107(6) of the CGST Act (introduced via amendments effective October 1, 2025), cannot apply retrospectively to proceedings initiated by a Show Cause Notice (SCN) issued before that date. The right to file an appeal and the governing legal conditions crystallize on the date the dispute (lis) formally commences via the SCN, not on the date of the final adjudication order or when the appeal is filed.
C. Central Excise
Road and Infrastructure Cess revised on Export of Diesel to Rs 1.5 per Litre: The notification amends earlier notification 11/2026 dated 26th March 2026, to revise Road and Infrastructure Cess (RIC) applicable on export of Diesel. The RIC rate has been substituted with Rs 1.50 per litre (Pre-revised Rs NIL per litre), effective from 3rd August 2026.
(Link: Central Excise Notification 42/2026 (T) dated 03/08/2026)
SAED revised on Export of ATF to Rs 22.00 per Litre: The notification amends earlier notification 08/2026 dated 26th March 2026, to revise the Special Additional Excise Duty (SAED) applicable on export of Aviation Turbine Fuel (ATF). The SAED rate has been substituted with Rs 22.00 per litre (Pre-revised Rs 14.50 per litre), effective from 3rd August 2026.
(Link: Central Excise Notification 41/2026 (T) dated 03/08/2026)
SAED revised on Export of Petrol to Rs 3.50 and Diesel to Rs 24.00 per Litre: The notification amends earlier notification 06/2026 dated 26th March 2026, to revise the Special Additional Excise Duty (SAED) applicable on export of Petrol to Rs 3.50 (Pre-revised Rs 2.50 per litre) and Diesel to Rs 14.00 per litre (Pre-revised Rs 15.50 per litre), effective from 3rd August 2026.
(Link: Central Excise Notification 40/2026 (T) dated 03/08/2026)
D. Custom Duty
Anti-Dumping Duty on Phthalic Anhydride originating in or exported from China, Korea and Thailand: Anti-dumping Duty has been imposed on imports of Phthalic Anhydride originating in or exported from China, Korea and Thailand and imported into India. It shall be effective for a period of five years.
(Link: Customs Notification 20/2026 (ADD) Dated 05/08/2026)
Standard Operating Procedure (SOP) for clearance of imported goods through Foreign Post Offices (FPO): The Circular prescribe SOP for clearance of imported goods through FPOs under the Postal Import Regulations. It is operational at Bengaluru, Kochi, Mumbai FPO, APSO Mumbai, Kolkata, Ahmedabad, Chennai and Delhi and is integrated with the Risk Management System (RMS). It prescribes uniform procedures for receipt, presentation, assessment, examination and clearance of personal postal articles, including electronic presentation by the Postal Authority, RMS-based assessment, restricted physical examination, monitoring of pending assessments, and electronic communication of clearance orders through the FPO Import Application.
(Link: Customs Circular 35/2026 Dated 06/08/2026)
Implementation of MeitY Notification for extension of timeline for compliance of IS 18112:2022 for Television Sets: MeitY has notified that the implementation timeline prescribed under Notification S.O. 1929(E) dated 26th April 2023 for “Television Sets” under Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order 2021, for compliance with IS 18112:2022, which was scheduled to come into effect from 26th July 2026, has been extended up to 26th Jan 2027. The field officers to be sensitised accordingly.
(Link: Customs Instructions 14/2026 Dated 07/08/2026)
E. Directorate General of Foreign Trade (DGFT)
Extension of i-CAS-Halal Implementation Timeline for Meat Exports to Egypt: The notification amends earlier notification 59/2025-26 dated 9th February 2026 relating to exports of specified meat and meat products to Egypt. It provides that, for Egypt, the mandatory implementation of the India Conformity Assessment Scheme (i-CAS)-Halal will take effect after nine months from the date of notification, instead of the earlier transition period, to facilitate system readiness and the onboarding and accreditation of certification bodies under the i-CAS-Halal framework.
(Link: DGFT Notification 28/2026 Dated 05/08/2026)
Introduction of Inventory-Based Cross-Border E-Commerce Export Framework Under FTP 2023: The Framework defines Exporter-on-Record (EOR), Seller-on-Record (SOR), Export Inventory, Domestic Inventory and Export Rebates and Refunds (ERR), and enables export-only inventory operations through registered EORs in accordance with the Consolidated FDI Policy. It prescribes eligibility conditions, including export of only Indian-origin goods, transfer of title only against confirmed export orders, and prohibition on speculative inventory build-up.
(Link: DGFT Notification 27/2026 Dated 05/08/2026)
Extension of India–UK CETA TRQ Application Deadline: DGFT has extended the last date for submission of online applications for allocation of Tariff Rate Quota (TRQ) under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) for Calendar Year 2026 to 9th August 2026.
(Link: DGFT Public Notice 26/2026 Dated 05/08/2026)
DGFT Notifies Procedures for Inventory-Based Cross-Border E-Commerce Framework: DGFT has operationalised the framework by inserting detailed procedures and notifying Aayaat Niryaat Form (ANF) 9A for registration of Exporters-on-Record (EOR). It prescribes registration requirements, obligations for updating registration details, digital repository maintenance, inventory management, compliance with destination country requirements, limits on administrative charges, timelines for disbursement of seller-attributable export benefits, seller visibility and disclosure requirements, reverse logistics and handling of returned consignments, annual compliance certification by an independent professional and record retention for five years.
(Link: DGFT Public Notice 25/2026 Dated 05/08/2026)
Applications Invited under India–Oman CEPA TRQ for FY 2026-27: DGFT has invited applications for Tariff Rate Quota (TRQ) allocation under the India–Oman Comprehensive Economic Partnership Agreement (CEPA) for FY 2026-27. The notice specifies eligible products and TRQ quantities, including dates, marble and travertine blocks and slabs, ethylene glycol, linear alkylbenzenes, various polyethylene products, polypropylene, ABS copolymers, PVC resin, PET flakes, marble products, aluminium ingots, aluminium alloy ingots, and aluminium wire.
(Link: DGFT Public Notice 24/2026 Dated 03/08/2026)
Seven New SIONs for Chemical & Allied Products notified under FTP 2023: DGFT has notified seven new Standard Input Output Norms (SIONs) under Product Group ‘A’ (Chemical and Allied Products) with SION Nos. A-3708 to A-3714.
(Link: DGFT Public Notice 23/2026 Dated 03/08/2026)
EPM Interest Subvention Implementation shifted from RBI to EXIM Bank: DGFT has notified the institutional transition of the Implementing Agency for the Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan from the Reserve Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank). It states that EXIM Bank will be responsible for operationalisation, portal management, verification and claim settlement.
(Link: DGFT Trade Notice 17/2026 Dated 07/08/2026)
DPIIT-Recognized Start-ups included under Source from India on Trade Connect: DGFT has expanded the eligibility for the “Source from India” feature on the Trade Connect ePlatform to facilitate participation by eligible DPIIT- recognized start-ups. The start-ups meeting the existing eligibility criteria may register under “Source from India”, receive a unique start-up badge linked to their profiles, and be onboarded after verification of export activity through the DGFT IEC database.
(Link: DGFT Trade Notice 16/2026 Dated 06/08/2026)
Integration of ICEGATE Duty Payment Data for Paperless EODC Processing Under AA and EPCG Schemes: DGFT has introduced integration of license-wise voluntary duty payment data received from Customs/ICEGATE with the DGFT online system for processing Export Obligation Discharge Certificate (EODC) applications under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) Schemes. The authenticated payment details will be available on both the DGFT BO Portal and Customer Portal and will be recognised for EODC processing and closure.
(Link: DGFT Trade Notice 15/2026 Dated 05/08/2026)
F. Securities and Exchange Board of India (SEBI)
Extension of PaRRVA Enrolment Deadline for IAs and RAs: SEBI has extended the timeline for enrolment with the Past Risk and Return Verification Agency (PaRRVA) for registered Investment Advisers (IAs) and Research Analysts (RAs) who wish to communicate certified past performance data to clients, including prospective clients. It has extended the enrolment deadline to 3rd September 2026, to facilitate a smooth and seamless implementation of the framework.
(Link: SEBI Circular Dated 03/08/2026)
Consultation Paper on Settlement and Risk Management: The proposals include revising norms relating to pay-in shortfalls, assigning specified compliance responsibilities to clearing corporations, discontinuing certain reporting requirements, rationalising periodic filings, removing obsolete provisions, standardising disclosures, updating settlement and risk management provisions, requiring clearing corporations to formulate standard operating procedures for unscheduled holidays, modifying provisions relating to T+1 settlement, direct pay-out of securities, transfer of funds, margin verification, delivery centres and depository participant reporting, and shifting certain stock broker-related provisions to the Master Circular for Stock Brokers. The suggestions/ comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 06/08/2026)
Consultation Paper on Reforms for REIT and InvIT Ease of Doing Business: The proposals include permitting REITs and InvITs to invest in third-party under-construction projects without controlling interest within existing regulatory limits subject to specified conditions; changing the basis for certain unitholder approvals to at least 75% of total votes cast instead of value; reviewing the exit offer framework by redefining dissenting unitholders, clarifying exit offer obligations in cases involving multiple sponsors, providing one year to restore minimum public unitholding where breached due to exit offers, and revising related timelines; recognising remote common infrastructure as real estate for REITs and omitting a redundant provision; and reducing the cooling-off period for offer for sale of illiquid privately listed InvITs from 12 weeks to 8 weeks. The suggestions/ comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 6/08/2026)
Consultation Paper on Issuance of Depository Receipts (‘DRs’) against units of REIT and publicly listed InvITs: The proposals permit issuance of Depository Receipts (DRs) against eligible securities, including units of REITs and InvITs. It proposes to permit DR issuance only for REITs and publicly listed InvITs, and not privately listed InvITs, citing restrictions applicable to privately listed InvIT units. The suggestions/ comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 04/08/2026)
G. Ministry of Corporate Affairs (MCA)
No Notifications/ Circulars during The week.
H. Insolvency and Bankruptcy Board of India (IBBI)
SC Restores Consumer Complaint Against Non-Corporate Debtor Respondents Despite IBC Moratorium: Case of Tejas Shah & Amita Shah vs Mantri Technology Constellations, SC Judgement Dated 27th July 2026. The apex court held that an insolvency moratorium under Section 14 of the IBC applies only to the corporate debtor and does not bar consumer complaints or legal proceedings against the company promoters, directors, or other non-debtor entities. It cannot be expanded by courts to protect directors or personal guarantors.
IBBI, Communications with Resolution Professional Exempt from RTI Disclosure: The First Appellate Authority, IBBI held that records relating to communications between the Board and the resolution professional are exempt from disclosure under Section 8(1)(h) of the RTI Act, while details of officers handling the complaint are exempt under Section 8(1)(j) of the RTI Act.
(Link: IBBI-FAA Order Dated 04/08/2026)
I. Reserve Bank of India (RBI)
Amendments to RBI Prior Sector Lending Targets and Classification Directions: The amendment excludes specified advances from calculation of Adjusted Net Bank Credit (ANBC) for priority sector lending targets. The excluded advances are those extended in India against fresh FCNR(B) deposits of three to five years mobilised, including renewed deposits, between 8th June 2026 and 30th Sept 2026, and against NRE term deposits of three years or more mobilised, including renewed deposits, between 19th June 2026 and 30th Sept 2026, where the deposits qualify for CRR and SLR exemption.
(Link: RBI Circular 232/2026 Dated 07/08/2026)
Amendments to RBI Responsible Business Conduct Directions: These directions are applicable to Commercial Banks, Small Finance Banks, Local Area Banks, Regional Rural Banks, Urban Coop Banks, Rural Coop Banks, All India Financial Institutions, NBFCs and Housing Finance Companies. These introduce definitions of “recovery agency” and “recovery agent”, and inserts a comprehensive framework governing recovery of loan dues and engagement of recovery agencies. It requires banks to establish policies on loan recovery, due diligence, training, code of conduct, borrower compensation, disclosure of recovery agencies, fair treatment of borrowers, possession of security, grievance redressal, monitoring and compliance. It also prescribe standards for recovery agents’ conduct, permitted contact hours, prohibited recovery practices, and compliance with regulatory instructions.
(Link: RBI Circular 223/2026(CB), 224/2026 (SFB), 225/2026(LAB), 226/2026(RRB), 227/2026(UCB), 228/2026(RCB), 229/2026(AIFI), 230/2026(NBFC) and 231/2026(HFC) Dated 06/08/2026)
Draft RBI Credit Valuation Adjustment (CVA) Framework Directions: The draft directions on the Credit Valuation Adjustment (CVA) Framework replaces 2011 guidelines to align with final Basel III standards. Banks must use the Basic Approach for Credit Valuation Adjustment, choosing between the full or reduced version. The full version recognizes credit spread hedges for active risk management, while the reduced version simplifies implementation for less active banks. Banks with non-centrally cleared derivative notional amounts of Rs 10 lakh crore or less can set CVA capital charge at 100% of their Counterparty Credit Risk (CCR) charge. It introduces differentiated supervisory risk weights based on sector and credit quality, separating systematic and idiosyncratic risks. The suggestions/ comments from stakeholders are invited.
Draft Amendments to RBI Commercial Banks Prudential Norms on Capital Adequacy Directions: The draft updates Chapter VII to align India’s leverage ratio framework with the international Leverage Ratio 2017 Standard set by the Basel Committee. It proposes a minimum leverage ratio of 4% for domestic systemically important banks (D-SIBs) and 3.5% for other commercial banks. The suggestions from stakeholders are invited.
Draft Amendments to RBI NBFC Credit Facilities Directions- Restricting Revolving Credit Products: The draft amendments propose inserting definitions of “revolving credit” and “term loan”, removing Part D – Demand/Call Loans from Chapter VIII, and introducing a new Part F – Restrictions on Revolving Credit Facilities. Under the proposed paragraph 108A, NBFCs would be permitted to offer only credit products in the nature of term loans and would not be allowed to offer revolving credit products. The suggestions/ comments from stakeholders are invited.
Draft Rural Co-operative Banks Concentration Risk Management and Credit Facilities Directions: The draft directions propose replacing the Concentration Risk Management Directions and amending the Credit Facilities Directions. The proposals prescribe prudential exposure limits for single and group counterparties, unsecured advances and the real estate sector, while allowing larger Rural Co-operative Banks (RCBs) with deposits above Rs 1,000 crore flexibility in determining housing loan tenor and moratorium periods. These also propose enhanced housing loan limits, withdrawal of prescribed prudential sectoral exposure limits except for the real estate sector, revised housing loan norms, unsecured advance limits, and lending to nominal members. The suggestions/ comments from stakeholders are invited.
(Link: RBI Draft Directions Risk, Credit Dated 06/08/2026, Press Release)
Draft Guidelines for ‘on tap’ Licensing of Urban Coperative Banks: The draft framework proposes eligibility for credit co-operative societies in existence for at least 10 years, with a minimum deposit size of Rs 10,000 crore, minimum net worth of Rs 300 crore, registration under the Multi-State Co-operative Societies Act, 2002, specified financial parameters, fit and proper criteria for directors, and submission of a detailed business plan. It also sets out the screening, inspection, evaluation and approval process, an 18-month validity for in-principle approval, conditions relating to IT systems, governance, byelaw amendments and compliance before grant of a banking licence. The suggestions/ comments from stakeholders are invited.
(Link: RBI Draft Directions Dated 05/08/2026, Press Release)
The Bankers’ Books Evidence Bill 2026: It proposes to repeal the Bankers’ Books Evidence Act 1891 and establish a modern legal framework governing evidence relating to bankers’ books by recognising records maintained in physical, electronic, digital, cloud-based and other data storage forms. The Bill defines key terms, prescribes conditions and certificate formats for certified copies of physical and electronic records, permits manual, digital or electronic authentication, and provides that certified copies are admissible as prima facie evidence in legal proceedings. It specifies conditions for admissibility of electronic or digital records, including requirements relating to computer systems, authorised access, data integrity, cybersecurity and safeguards against tampering.
(Link: Lok Sabha Bill Introduced Dated 04/08/026)
J. Miscellaneous
SC, Non-Signatory can be Referred to Arbitration as a Veritable Party: Case of KKH Finvest Pvt Ltd vs Ashiesh Shukla, SC Judgement Dated 5th August 2026. The issue was whether a non-signatory consultant and minor shareholder who executed a separate Share Purchase Agreement (SPA) is bound by the arbitration clause contained in the overarching parent agreement (Memorandum of Settlement). The apex court ruled that a non-signatory shareholder can be bound by an arbitration agreement if they are a “veritable party” to a composite, interconnected corporate transaction.
SC, Supreme Court Judgments Apply Retrospectively Unless Expressly Made Prospective: Case of Government of India vs Devraj Urs Medical College, SC Judgement Dated 4th August 2026.The apex court ruled that all apex court decisions apply retrospectively unless explicitly made prospective.
SC Restores Cheque Bounce Conviction; Financial Capacity Alone Cannot Rebut NI Act Presumption: Case of Kuntegowda vs Thurubbaiah, SC Judgement Dated 4th August 2026.The apex court restored conviction in a cheque bounce case under Section 138 of the Negotiable Instruments Act. The Court ruled that the initial onus to claim the complainant lacks financial capacity to give a loan, rests on the accused, which should ideally be stated in the reply to the statutory demand notice rather than introduced as a delayed afterthought.
SC, Limitation Act Section 18 Extends Limitation Only for Acknowledged Debt: Case of Airen and Associates vs Sanmar Engineering Services Ltd, SC Judgement Dated 24th July 2026. The apex court ruled that a partial acknowledgment of a debt under Section 18 of the Limitation Act, 1963, only extends the limitation period for the specific amount acknowledged, not for the entire larger sum claimed.
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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)
