Articles and Updates

• Sawant Singh -

The The Reserve Bank of India (RBI) recently issued guidelines on the licensing of new banks in the private sector and invited applications by 1 July 2013. While the guidelines have been on the anvil since 2010, it is understood that the RBI was keen for certain amendments to be made to the Banking Regulation Act, 1949 – which were brought about by the Banking Laws (Amendment) Act, 2012 – before releasing the guidelines. This article discusses some key features of the guidelines.

• Sawant Singh -

The Indian financial sector recently received a fillip with the enactment of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012. The act aims to remove some bottlenecks observed in the existing regulatory framework for recovery of non-performing assets (NPAs), namely the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDB Act), and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act).

• Sawant Singh -

he year has started on a bright note for the banking sector with the enactment of the Banking Laws (Amendment) Act, 2012, which makes several far-reaching changes to existing banking legislation and increases the ambit of regulatory oversight of the Reserve Bank of India (RBI). It is expected that these changes will pave the way for entry of new players in this field, leading to greater competition, efficiency and wider financial inclusion

• Sawant Singh -

n what is seen as a resounding victory for the banking sector, the Supreme Court, India’s highest judicial body, recently held that banks could consider default in payment obligations under derivative transactions at par with default under other lending facilities, for the purposes of reporting of wilful defaulters.

• Sawant Singh -

he Indian economy, while having shed much of its socialist bag - gage towards the close of the twentieth century, still believes in closely monitoring certain key components of its monetary system. Management of foreign exchange reserves is one exam - ple of this, with the external commercial borrowing (ECB) policy placing several restrictions, such as limiting permis - sible end uses, on securing loans from abroad.