RBI’s Amendment Directions, 2025 strengthen credit discipline and monitoring for cash credit, current, and overdraft accounts. Key takeaway: banks must manage accounts based on borrower exposure to mitigate credit risk.
The amendment directs payments banks to enforce account usage limits, monitor transactions biannually, and prevent pass-through or unauthorized activities, effective April 2026.
The RBI’s 2025 amendment revises account maintenance rules for Small Finance Banks to ensure stricter monitoring of CC, Current, and OD accounts. Banks must flag accounts, monitor usage, and prevent fund diversion to maintain credit discipline.
Banks must implement robust monitoring systems, flag high-risk accounts, and regularly review compliance. Accounts violating usage restrictions must be converted or closed within three months. This ensures transparency and effective tracking of fund utilization.
A company and its directors avoided penalties for late filing of financial statements after submitting them within thirty days of the show-cause notice, demonstrating compliance relief under Section 454(3).
A company and its directors were exempted from penalties for late filing of financial statements after rectifying the default within thirty days, highlighting the protective provision under Section 454(3).
A company and its director were penalised for failing to mention directors’ DINs in financial statements, highlighting the importance of accurate statutory disclosures under Section 158.
A company and its directors were penalised under the Companies Act for failing to hold a quarterly board meeting within the prescribed 120-day period, highlighting strict enforcement of Section 173 compliance.
MCA penalizes a company and its Managing Director for late filing of director resignation form DIR-12, emphasizing strict compliance under Section 172 of the Companies Act.
The 2025 amendment introduces the term “ineligible director” and prescribes a drawing-of-lots method for board reconstitution, clarifying removal and succession procedures in co-operative banks.
