BANKING & FINANCE
Default Loss Guarantee: RBI clarifies their stand
The Reserve Bank of India (“RBI”) had, basis the recommendations of the Working Group on ‘digital lending including lending through online platforms and mobile apps’ (“Working Group Report”), issued a press release on August 10, 2022 (“Press Release”) followed by the “Guidelines on Digital Lending” on September 2, 2022 (the “DL Guidelines”).
Digital Lending - The confusion continues.
The Regulated Entities ("REs") who are covered: The applicability of the norms on digital lending largely remains the same as highlighted by us in the Preliminary Update. The Guidelines are applicable to digital lending extended by (a) all commercial banks; (b) Primary (Urban) Co-Operative Banks, State Co-operative Banks, District Central Co-operative Banks; (c) Non-Banking Financial Companies.
The Banking Regulation Review - The Law Reviews
Our partners Vineetha MG, principal associate, Pratik Patnaik, senior associate, Namit Gehlot and associate, Shubham Bharti penned the India chapter for ‘The Law Reviews (TLR)’ for their book, “The Banking Regulation Review, Edition 13”. The chapter encompasses the spectrum of banking regulations in India including regulations covering #investments by the banks, their control regime and transfer of banking business. The chapter also covers the major steps initiated by Reserve Bank of India in recent past. Some of the emerging concepts on the horizon such as "#DigitalBanking", "Potential of ARCs for Stressed Assets" and “#Confidentiality Requirements of RBI” have also been conversed.