KYC Norms — CDD, EDD and Periodic Updation Rules

KYC involves Customer Due Diligence (CDD) at onboarding and Enhanced Due Diligence (EDD) for high-risk customers. Banks must periodically update KYC — every 10 years for low risk, 8 years…

Basel III — CRAR, Tier 1 & Tier 2 Capital for Indian Banks

Basel III mandates Indian banks to maintain a minimum CRAR of 11.5% (9% minimum + 2.5% Capital Conservation Buffer). Tier 1 must be at least 8.875%. D-SIBs like SBI must…

FEMA 1999 — LRS Limit, Capital vs Current Account Rules

FEMA replaced FERA in 1999, shifting from criminal to civil penalties. Current account transactions (trade, travel, education) are generally free. Capital account transactions need RBI permission. The LRS allows residents…

NPA Classification: Sub-Standard, Doubtful & Loss Assets Explained

A loan turns NPA when interest or principal is overdue for more than 90 days. Sub-standard lasts up to 12 months, Doubtful beyond that, and Loss Assets are deemed irrecoverable.…

Section 5(b) Banking Regulation Act — What Defines a “Bank”?

Under Sec 5(b) of the BR Act 1949, banking means accepting deposits of money from the public for the purpose of lending or investment, repayable on demand or otherwise, withdrawable…

Important Time Norms Term Loan → NPA if overdue > 90 days Cash Credit / Overdraft → NPA if account is out of order > 90 days Bills Purchased/Discounted →…

CIBIL Score Bands — What Each Range Means for a Loan Application

CIBIL score ranges: 750–900 (Excellent) — best rates, fast approval; 700–749 (Good); 650–699 (Fair) — higher rates likely; below 650 — rejection or collateral mandatory. Banks now pull CIBIL on…