Karnataka High Court Refuses To Quash NI Case Over Cheque After Vijaya Bank Merger With Bank of Baroda

The Karnataka High Court on 17 September refused to quash proceedings against Bhadramma under Section 138 of the Negotiable Instruments Act, holding that the merger of Vijaya Bank with Bank of Baroda did not invalidate the cheque in question. Justice Suraj Govindaraj held that a cheque drawn on a bank that has merged with another bank cannot be treated as invalid merely because of the merger. The Bench observed: “….. a cheque which had been issued on a bank which has merged with another bank...

BREAKING | Supreme Court Refuses To Stay Charges On UPI Merchant Transactions Above ₹2,000

The Supreme Court on Monday refused to stay the Centre's decision to impose a 0.4% Merchant Discount Rate (MDR) on specified UPI merchant transactions above ₹2,000, while seeking the Union government's response to a challenge against the proposed charges. A Bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana said it needed the relevant facts on affidavit. “We need these facts on affidavit. It's more of a technical issue,” the court ordered.The court also issued...

RBI Penalises Hero Fincorp, KLM Axiva Finvest, Ola Financial Services For Regulatory Violations

The Reserve Bank of India on Thursday imposed monetary penalties on three financial entities for non-compliance with its regulatory directions.A penalty of ₹10 lakh was imposed on Hero Fincorp Limited for collecting excess interest from certain loan accounts, in violation of RBI's directions on the Fair Practices Code for Lenders – Charging of Interest.A ₹2.70 lakh penalty was imposed on KLM Axiva Finvest Limited for failing to pay certain borrowers the surplus amount realised from the auction...

Supreme Court Dismisses PIL Seeking Probe Into ₹1,537 Crore JKM Infra Debt Settlement

The Supreme Court on Thursday dismissed a Public Interest Litigation seeking a court monitored probe into the settlement of JKM Infra Projects Ltd's ₹1,537 crore debt for ₹73.50 crore through the Asset Reconstruction Company (ARC) route. The petitioners had alleged a wider nexus between banks, ARCs and borrowers and sought investigation by agencies including the Central Bureau of Investigation, Enforcement Directorate and Serious Fraud Investigation Office.A bench of Chief Justice Surya...

Bank Suffering Financial Loss From Fund Siphoning Is “Victim” In Bail Proceedings: Karnataka High Court

The Karnataka High Court has held that a bank which suffers financial loss due to an accused allegedly siphoning funds is a “victim” entitled to participate in the accused's bail proceedings. Justice M Nagaprasanna allowed Standard Chartered Bank's petition challenging the Additional Chief Metropolitan Magistrate, Bengaluru's order rejecting its application to intervene in the bail proceedings of accused Kishore Nakka. The Bench held: “It is trite law that a person would become a victim who...

Mere Forgery In Loan Papers Can't Implicate Bank Manager Without Criminal Intent: Telangana High Court

The Telangana High Court on 17 September held that merely processing or forwarding loan proposals cannot, by itself, establish criminal conspiracy or other offences against a bank officer in the absence of material showing knowledge, dishonest intention or conscious participation in fraudulent transactions. A Bench of Justice N. Tukaramji quashed the criminal proceedings against Dr. V. Raja Gopal Reddy, a former Branch Manager of Indian Bank, Osmangunj Branch, Hyderabad, who was arrayed as...

Delhi High Court Sets Aside Interim Relief Allowing NBFC To Continue Business After RBI Cancels Registration

The Delhi High Court has set aside an interim order that allowed Reliant Credits (India) Limited, a non-deposit-taking Non-Banking Financial Company (NBFC), to continue its Non-Banking Financial Institution (NBFI) business despite cancellation of its Certificate of Registration (CoR) by the Reserve Bank of India (RBI).A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia held that the Single Judge had not adequately considered RBI's findings and the wider public...

Calcutta HC Quashes Pranabananda Cooperative Bank Winding-Up, Says Liquidator Can't Judge Own Cause

On 16 September, the Calcutta High Court held that requiring appellants to challenge the appointment of a liquidator through the liquidator himself would amount to an “appeal from Caesar to Caesar's wife”, as it would require the liquidator to act as a judge in his own cause. A Division Bench of Justices Shampa Sarkar and Arjun Ray Mukherjee set aside the winding-up of Pranabananda Cooperative Bank Limited, as well as the orders of the West Bengal Cooperative Tribunal and Single Judge upholding...

'Abominable': Allahabad High Court Pulls Up SBI For Debiting Wife's FD For Husband's Loan

The Allahabad High Court at Lucknow has pulled up the State Bank of India for debiting ₹19.90 lakh from a woman's fixed deposit towards her deceased husband's loan dues, calling the process “abominable” and “clearly an anathema to banking practice”.A bench of Justice Shekhar B Saraf and Justice Abdhesh Kumar Chaudhary held that SBI had failed to show any legal basis for debiting the account of Neha Mishra, who had no privity of contract with the bank, towards her husband's dues.Mishra's husband,...

PIL In Supreme Court Challenges Charges On UPI Merchant Payments Above ₹2,000

A Public Interest Litigation has been filed before the Supreme Court challenging the 0.4% charge on specified UPI merchant payments above ₹2,000.The petition, filed by Advocate Anjan Datta, challenges the September 14, 2026, Gazette notification issued under Section 10A of the Payment and Settlement Systems Act, 2007, as amended by the Taxation and Other Laws (Amendment) Act, 2026.It also challenges the Merchant Discount Rate (MDR) framework announced by the Ministry of Finance on September 15,...

Benami Property Cannot Be Released From Attachment On Ground Of Bank's Security Interest: SAFEMA Tribunal

The Appellate Tribunal under SAFEMA at New Delhi has ruled that a bank's security interest under the SARFAESI Act cannot secure release of a property found to be benami from attachment under the Benami Act.A coram of Member Balesh Kumar and Member Rajesh Malhotra while refusing to order the release of one such property, observed, "If the proposition of the SBI is accepted then the very purpose/intent as well as the object of the Benami Act would be defeated as unscrupulous person after...

Delhi High Court Asks RBI To Mediate PayU's Dispute Over ₹6.88 Crore IRF Deductions

On 14 September, the Delhi High Court directed the Reserve Bank of India (RBI) to facilitate mediation between PayU Payments Private Limited and other stakeholders in a dispute concerning deductions from PayU's settlement accounts towards Interchange Reimbursement Fee (IRF) claims.Justice Subramonium Prasad also ordered the RBI to depute a senior officer to mediate between the parties and attempt to resolve the dispute within 30 days. The Bench held: “In the opinion of this Court,...