Suspension Of Fraud Classification Does Not Automatically Nullify Criminal Investigation: Telangana High Court

The Telangana High Court has held that suspension of a bank's administrative decision classifying a borrower's account as "fraud" does not prevent investigation into cognizable offences. The court observed that the CBI's jurisdiction to investigate cognizable offences does not derive its authority merely from the bank's administrative fraud classification. A bench of Justice Nagesh Bheemapaka dismissed a writ petition filed by Vivimed Labs Ltd and its Managing Director challenging the CBI's...

Bank's Failure To Inform Borrower Of Insurance Rejection Is Deficiency In Service: Chhattisgarh High Court

The Chhattisgarh High Court on 25 June held that a bank which facilitates insurance under a loan-linked group insurance scheme must inform the borrower of rejection of the insurance proposal, and failure to do so constitutes deficiency in service. A Bench of Justice Ravindra Kumar Agrawal dismissed a petition filed by State Bank of India under Article 227 of the Constitution and affirmed the orders passed by the District, State and National Consumer Commissions. He observed: “Once the...

RBI Not Bound To Hear Bank Board Before Supersession U/S 36AAA Banking Regulation Act: Kerala HC

The Kerala High Court on Friday, 3 July, held that the Reserve Bank of India (RBI) is not required to provide a prior hearing before superseding the board of directors of a co-operative bank under Section 36AAA of the Banking Regulation Act, 1949. However, it clarified that consultation with the State Government is mandatory before passing such an order. Justice M.A. Abdul Hakhim considered a plea filed by the former President of the Irinjalakuda Town Co-operative Bank, M.P. Jackson,...

Calcutta High Court Quashes SBI Fraud Classification Show Cause Notice Against Pincon Spirit Director

The Calcutta High Court has recently quashed the State Bank of India's December 2, 2025 show cause notice proposing to classify the loan account of Pincon Spirit Ltd. as fraud and proceed against its director, Monoranjan Roy. The court held that the notice was founded on an inconclusive forensic audit that had been conducted without access to the company's complete financial records. Justice Krishna Rao observed that the forensic auditor did not have the borrower's books and records while...

RBI Appoints Ravi Shankar As Executive Director To Head Statistics Department

The Reserve Bank of India (RBI) on Wednesday appointed Ravi Shankar as its new Executive Director with effect from July 1, 2026.According to the RBI, Shankar will oversee the Department of Statistics and Information Management in his new role as Executive Director. He had been serving as the Adviser-In-Charge of the department prior to his promotion. According to the press release, Shankar has over three decades of experience at the central bank, spanning across several areas, including...

Diluting RBI's NBFC Capital Requirements Could Have Impact On India's Financial System: Bombay High Court

The Bombay High Court recently observed that permitting dilution of the Reserve Bank of India's directions on the minimum Net Owned Fund (NOF) requirement in favour of a Non-Banking Financial Company with weak financial standing and low NOF could have repercussions on the country's financial system. It upheld the Reserve Bank of India's decision cancelling the company's Certificate of Registration after it failed to achieve the prescribed NOF by the stipulated deadline. A division bench of...

Delhi High Court Sets Aside Refund Order For Non-Refundable Processing Fee In Undisbursed Loan Case

The Delhi High Court has held that a borrower who has accepted a facility letter expressly stipulating that the processing fee is non-refundable cannot subsequently seek its refund merely because the loan was never disbursed, particularly where the disbursal failed due to the borrower's inability to satisfy the conditions precedent.Justice Neena Bansal Krishna allowed an appeal filed by Standard Chartered Bank and set aside the trial court's decree directing the bank to refund the processing fee...

Kerala High Court Dismisses Cholamandalam Appeal, Reiterates Threshold For Intra-Court Appeals

The Kerala High Court on 19 June dismissed a writ appeal filed by Cholamandalam Investment and Finance Company Limited after holding that a purely procedural interim order, which does not affect substantive rights or cause serious prejudice, cannot be appealed under Section 5(i) of the Kerala High Court Act, 1958. A Division Bench of Justices Anil K Narendran and Muralee Krishna S ruled that an intra-court appeal lies only against orders that substantially affect the rights or liabilities of...

RBI Drops Prior Approval Requirement For Foreign Currency Note Write-Offs Exceeding USD 2,000

The Reserve Bank of India (RBI) has withdrawn the requirement for its prior approval before foreign currency notes exceeding USD 2,000 are written off and revised the reporting format for such write-offs. The change forms part of a broader revision of reporting requirements for Authorised Persons under the Foreign Exchange Management Act, 1999. It has been notified through A.P. (DIR Series) Circular No. 17 dated June 24, 2026, issued pursuant to the Foreign Exchange Management (Authorised...

One Lender's Absence Doesn't Invalidate Resolution Under RBI's Stressed Asset Framework: Karnataka High Court

The Karnataka High Court has recently held that the absence of one lender from meetings convened to consider a borrower's resolution plan under the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets, 2019 does not invalidate the resolution process. It also does not affect a decision approved by the requisite majority of lenders. Justice Lalitha Kanneganti dismissed a writ petition filed by Ganjam Nagappa and Son Private Limited, a Bengaluru-based luxury jewellery...

Explained: Five Defences Nirav Modi Raised In Bank of India Personal Guarantee Case And Why London Court Rejected Them

A court in London has held fugitive diamantaire Nirav Modi personally liable under a personal guarantee executed in favour of Bank of India. In doing so, it rejected five principal defenses raised by him and directed him to pay USD 4,105,189.34 together with contractual interest to the Bank. Deputy High Court Judge Simon Tinkler of the High Court of Justice, Business and Property Courts of England and Wales, delivered the judgment making Modi liable for over Rs 100 crore in personal guarntee...

Calcutta High Court Grants Interim Protection To Srei Equipment Finance Over Unsecured ₹273.48 Crore Loan

The Calcutta High Court has granted interim protection to Srei Equipment Finance Ltd in a dispute over a loan extended to Bengal Shristi Infrastructure Development Ltd for the Shristi Nagar Project. The court held that the lender had established a prima facie case because the loan remained unsecured to the extent that the mortgage contemplated under the financing documents had not been created. A division bench of Justices Debangsu Basak and Md. Shabbar Rashidi directed Bengal Shristi to...