Banking and Finance

May 25, 2022 In Banking and Finance, Legal, MSME/Startups, Policy and Regulatory, Premium, SME/MSMEs, Start-Ups By editor

RBI Directions for Microfinance Loans, 2022

The Reserve Bank of India has instructed all the regular entities lending to the microfinance sector to ensure that the loans are collateral-free and not protected by a lien on the borrower’s deposit account.

Tune into the #LawWiser premium video on “RBI Directions for Microfinance Loans, 2022” featuring Prabhjot Singh briefly explaining the directions given by RBI.

In the video, Prabhjot tells us that the Reserve Bank of India has eliminated the margin caps that were previously solely applicable to non-banking finance businesses.

The collateral loans offered to low-income households, i.e., households with an annual income up to $3 lakh, will now be termed “microfinance loans”.

He shares that there must be a RE board-approved policy that brings flexibility to the payback period.

Interest rates on all three levels, i.e., minimum, maximum, and average on the microfinance loans must be informed in all RE offices.

RE or its agent will not utilize punitive recovery measures.

To learn more about these RBI directions, watch the full video.

#rbi #rbipolicy #collateral #loans #microfinance #borrowers #nbfc #business #finance #recovery #payback #interestrates #msme #startups #compliance #msmeindia

March 16, 2022 In Banking and Finance, Fin Tech, Legal, MSME/Startups, Policy and Regulatory, Premium, SME/MSMEs, Start-Ups, Video By editor

Proposed tokenisation of cards by the RBI

Watch now #LawWiser premium video on “Proposed Tokenisation of Cards by the RBI” featuring Gaurav Bhalla, Partner at Ahlawat and Associates sharing useful insights on RBI card tokenisation.

Gaurav explains the background, how tokenisation works, types of tokenisation, applicability, effects and much more in this video. He shares that tokenisation of debit and credit cards allows the generation of a ‘token’ number or an ‘alternate code’ to replace the 16-digit card number entered by the customer. Each token will be unique to the requestor, the user’s card, and the device with which the card is registered. The token request is made by the merchant of the online platform (on behalf of the card-holder or card owner) to a card network (eg – Visa; Mastercard and others) which will then issue a token.

There are different types of tokenisation available like

(i) Format preserving tokens – These tokens replace the 16-digit numbers on a card with an altogether different set of 16-digit numbers.

(ii) Non-format preserving tokens – This system does not follow the 16-digit number format; and. replaces the original 16-digit card number with alphanumeric characters. Entities such as Razorpay uses non-format preserving tokens.

The system of tokenisation has been introduced by the RBI and is only applicable to domestic transactions. Tokenisation is used only for online transactions and is specific to a merchant.

The Reserve Bank of India issued a notification dated January 8, 2019, titled ‘Tokenisation –

Card transactions wherein it was announced that card networks for tokenisation in card transactions for a specific use case. This announcement extended to all uses cases/channels [e.g., Near Field Communication (NFC) / Magnetic Secure Transmission (MST) based contactless transactions, in-app payments, QR code-based payments, etc.] or token storage mechanisms (cloud, secure element, trusted execution environment, etc.). However, at that point, this facility is offered only through mobile phones/tablets.

Don’t forget to watch the full video to learn all about the Tokenisation of cards by RBI on LawWiser.

#tokenisation #rbi #transmission #tokens #merchants #merchant #mastercard #source #virtualassets #msmeindia #msme #msmesector #msmes #rbipolicy #bankingindustry #banks #compliancesolutions #startup #startupindia

February 9, 2022 In Banking and Finance, Explainers, Legal, Others, Others, Policy and Regulatory, Video By editor

Interface between Insolvency & Bankruptcy Code and Admiralty Act

Watch now LawWiser’s Explainer with Zoeb Cuttlerywala, Associate Partner, Phoenix Legal, on “Interface between Insolvency & Bankruptcy Code and Admiralty Act”. The interplay between IBC and Admiralty Act has caught everybody’s attention with a very recent ruling of the Bombay High Court in the commercial admiralty suit between Angre Port Private Ltd. v/s Vessel TAG 15. Watch Zoeb explaining in detail the facts of the case along with the issues involved and the findings by the Bombay High Court. He also states that this matter has brought clarity to important issues governing Admiralty law and insolvency law. #Commercial #Banking #IBC #Bombay #Highcourt #Admiralty #Insolvency #Explainer #Suit #Legalupdate #Legalvideo #Video

February 1, 2022 In Banking and Finance, Channels, In a Minute, Infrastructure, Legal, Sectors, Video By editor

Successful Bidder Cannot Wriggle out of a Bid in Liquidation | #InAMinute

Watch Now LawWiser’s latest In a Minute video on ‘Successful Bidder cannot wriggle out of a bid in liquidation’ featuring Neha Naik, Associate Partner, Phoenix Legal.

There is a growing trend of successful bidders in insolvency as well as liquidation proceedings wanting to retract their offers citing various reasons.

In this video, Neha explains that the Bidder cannot wriggle out of the contractual obligations arising out of acceptance of his Bid for sale as a going concern in liquidation. She quickly takes us through 2 important decisions one by the Supreme Court of India and the other by the National Company Appellate Tribunal (NCLAT).

The decisions are related to the fact that after accepting the bid, the bidder will not be entitled to the withdrawal if they fail to comply with the terms of the contract and consequently the bidder cannot wriggle out of the contractual obligations.

#inaminute #ibc #insolvency #bidding #contract #liquidation #supermecourtofindia #nclat #contractualobligation #corporatedebtor

December 13, 2021 In Banking and Finance, Channels, Legal, Others, Sectors, Video By editor

Sebi’s Attractive Combo For Dealmakers | #QuickUpdates

Tune into the latest video where LawWiser takes you through the update on “Sebi’s Attractive Combo For Dealmakers”.

Watch Prabhjot Singh sharing the update on Securities and Exchange Board guidelines that comprises of clearing hurdles for acquirers keen to take listed companies private.

With this amendment, the SEBI has put to rest the two contradictory SEBI regulations that come into play for acquirers who intend to delist the company.

December 8, 2021 In Banking and Finance, Channels, Legal, Others, Sectors, Video By editor

Credit Suisse Winding-up Plea & Withdrawal of Insolvency Proceedings

Watch Prabhjot Singh quickly taking through the decision of the Madras High Court allowing Credit Suisse AG’s winding petition against SpiceJet.

The second update is on the national company tribunal allowing the withdrawal of insolvency proceedings against MGF Developments, following a settlement agreed between the company and homebuyers.

Stay tuned with LawWiser for more videos!

December 7, 2021 In Banking and Finance, Channels, Legal, Others, Sectors, Video By editor

Sarfaesi Proceedings & SC on Construction Ban In Delhi (Updates 2021)

Sarfaesi Proceedings Regarding Objections from Bank & Supreme Court Refuses Urgent Listing for Lifting Construction Ban in Delhi

Sarfaesi Proceedings Regarding Objections from Bank & Supreme Court Refuses Urgent Listing for Lifting Construction Ban in Delhi Watch latest updates on #LawWiser regarding recent Supreme Court orders.

Prabhjot Singh briefly explains these decisions of the Supreme Court. The first on the SARFAESI Act, where the court has held that failure to furnish a reply by the creditor, as per the mandate of Section 13(3A) of the SARFAESI Act, not permitting the debtor to discretionary relief.

On the other hand, Supreme Court has also turned down the plea made on behalf of the builders group for urgent listing of its appeal to lift the blanket ban imposed on construction activities in Delhi NCR.

Watch more videos as LawWiser.com

December 4, 2021 In Banking and Finance, Channels, Fin Tech, Legal, Policy and Regulatory, Sectors, Video By editor

Cryptocurrency Advertisement Guidelines to Undergo Changes

Tune into this video where LawWiser takes you through the latest update on “Cryptocurrency Advertisement Guidelines to Undergo Changes”.

Watch Prabhjot Singh sharing the update on how with recommendations from the Advertising Standards Council of India the Government is looking to revise the advertisements guidelines for Cryptocurrency.

November 29, 2021 In Banking and Finance, Channels, Fin Tech, Legal, Policy and Regulatory, Sectors, Video By editor

Cryptocurrency and Regulation of Official Digital Currency Bill, 2021

Notably, there has been a tremendous increase of advertisements wherein we saw different film stars featuring in the ads of “Cryptocurrency,” promoting high investment returns in crypto. However, it has a dark side, too, as it has been used for certain illegal purposes.

Tune into this video, where LawWiser takes you through “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”.

Watch Prabhjot Singh briefly explain the reasons behind the ban on cryptocurrency.