A company and its directors were penalized under Section 450 for distributing an excess interim dividend due to miscalculated tax provisions, highlighting the need for accurate financial reporting.
The Bill proposes reducing net worth, turnover, and profit limits for mandatory CSR. This would bring a larger number of medium-sized companies within the CSR framework.
The amendment clarifies which financial services banks and their group entities can conduct, sets prudential investment limits, and enforces compliance timelines for risk mitigation.
RBI issues amendments clarifying agency business, referral services, and equity investment limits for small finance banks. Compliance timelines and prudential norms are emphasized.
The RBI’s 2025 amendment defines agency and referral services for Payments Banks, ensuring compliance and operational clarity in third-party financial product arrangements.
The RBI mandates that NBFCs within bank groups must follow commercial bank financial service guidelines for overlapping activities. The update ensures uniform regulation and avoids regulatory arbitrage.
The RBI amends provisions governing Non-Operative Financial Holding Companies, clarifying which activities belong within the bank and which must be undertaken through subsidiaries. The ruling reinforces restrictions on activities not permitted to banks.
RBI reduces Bank Rate to 5.50% and repo rate under LAF to 5.25%, lowering penal interest on CRR/SLR shortfalls and easing liquidity for banks and primary dealers.
The RBI lowered the policy repo rate by 25 bps to 5.25% due to historically low inflation, supporting continued economic growth while maintaining macroeconomic stability.
RBI’s amendments reflect accepted and partially accepted feedback on the draft circular, altering rules on group activities, NBFC norms, and investment thresholds.
