In the last decade, the financial sector in India has seen a paradigm shift in credit growth with Non-Banking Financial Companies (NBFC) acting as the key catalysts in this growth. As per data from the RBI, on March 31, 2021, the NBFC sector (including HFCs) had assets worth more than INR 54 trillion, equivalent to about 25% of the asset…
Introduction The word ‘Fintech’ is a portmanteau of the two terminologies- ‘finance’ and’ technology’. A debt collection fintech company in India is a form of business that utilizes technology to enhance or automate financial processes and services. Traditional financial services went through a radical transformation and emerged as a technology bases business. In the year 2015, the Fintech business witnessed…
What is a debt instrument? Any fixed income asset that allows the lender (or giver) to earn a fixed interest along with the principal amount while allowing the issuer (or taker) to use it to raise funds at a cost is called a Debt Market Instrument. Debt market instruments acts as a legal obligation on the issuer (or taker) who…
Origination of RDDBFI Act – An Introduction Banks and financial institutions that are properly registered by Reserve Bank of India ( RBI) provide legal entities and borrower entities with the loan facility. If the borrower fails in repaying the loan sum or part of it which includes unpaid interest and/or debt which is Non-Performing Asset (NPA), the debt may be…
“According to Black’s Law Dictionary, Arbitration in practice is the investigation and determination of a matter or matters of difference between contending parties, by one or more unofficial persons, chosen by the parties.” Overview In the Arbitration and Conciliation Act, 1996 section 16 describes the competency of an arbitral tribunal to rule on its own jurisdiction. The arbitration tribunal has…
“Mediation is a method of non-binding dispute resolution involving a neutral third-party who tries to help the disputing parties reach a neutrally agreeable solution.- Black Law Dictionary” Mediation is not a new aged Alternative Dispute resolution method but a traditional method. This method has been used in India for ages and is one of the most common methods used to…
Notice Demand notice (Dunning letter, soft legal notice/EMI reminder notice): Legal notice sent through an Advocate to the customer and place demand to pay the overdue amount. As and when the dues accrue, we can send this notice to customers anytime. We also can mention the time (Immediately, One week, 15 days) to repay the loan to hold further legal…
In the past few years, India has witnessed a boom in corporate culture and started making a shift from a traditional family-run business to corporate structures. However, India’s corporate law firm sector is still in its nascent stage and includes a mix of sole proprietorships and firms of several hundred lawyers and dozens of partners. Even though young, this sector…
Enforcement of Arbitral Awards Introduction The credibility of an arbitration-friendly jurisdiction rests primarily on the competence and ability of its award enforcement regime. A favorable award is just a half-won battle, the half is won after its enforcement. In India, the arbitral awards are primarily governed by the Arbitration and Conciliation Act, 1996 (the Act). Awards can be of two…
Negotiable Instruments are considered to be convenient method of transactions in commercial relations. With the advancement of banking sector and with all other benefits of banking system, cheque has become one of the widely used Negotiable Instrument. A cheque is a negotiable instrument that is acknowledged is readily accepted in lieu of payment of money. However, with the passage of…
INTRODUCTION The 2002 Act of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest, hereinafter referred to as the SARFAESI Act was passed on December 17, 2002. The purpose of the Act is to help the lenders to recover their debt as soon as possible. The SARFAESI Act assigns great powers to the banks and other financial…
Introduction The Limitation Act was introduced in 1963 to prescribe a time period for taking legal actions. It prescribes a period to an aggrieved person to file suits after the cause of action has occurred. If he files a suit after the prescribed period, he would be smashed by the law of limitation. In a similar fashion, a time-barred debt…