We are delighted to share this week's AKP Banking & Finance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in. 1. Regulatory Updates   1.1.  India   Reserve Bank of India (RBI)   1.1.1. RBI issues draft Circular on the revised guidelines of the Lead Bank Scheme for public comments The Reserve Bank of India (“ RBI ”) has issued a draft Circular to revise the Lead Bank Scheme (“ LBS ”) pursuant to its Statement on Developmental and Regul

Introduction     India’s regulatory ecosystem is proactively shaping AI governance without a standalone AI Act, leveraging robust sectoral frameworks to ensure innovation thrives alongside accountability. As of February 2026, there is no dedicated, comprehensive AI-specific legislation, with oversight emerging from the Information Technology Act, 2000, Digital Personal Data Protection Act, 2023, and recent February 2026 amendments to IT Intermediary Rules targeting synthetica

From Policy Sutras to Sector Mandates: Mapping India's AI Governance     Artificial Intelligence regulation in India is evolving into a principle‑based, techno‑legal framework that balances innovation with safety. For the IndiaAI Mission, the Union Budget 2026-2027 allocated INR 1,000 Crore for developing sovereign foundational AI models, supporting startups, building compute capacity (GPUs), and fostering responsible AI, shifting the focus from new institutions to diffusing

I. Regulatory Characterisation of AI: Product, Service, or Infrastructure     A threshold legal question in assessing AI risk under Indian Law is the regulatory characterisation of artificial intelligence systems, specifically whether AI is to be treated as a product, a service, or a form of digital infrastructure. This classification is not merely academic; it directly determines the applicable liability standard, regulatory oversight, and enforceability of contractual risk

We are delighted to share this week's AKP Corporate & Compliance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in. 1.             Labour Law   1.1.         Ministry of Labour & Employment announces comprehensive Employee Provident Fund Organisation reforms  Employment announces comprehensive Employee Provident Fund Organisation (“ EPFO ”) introduces reforms to enhance digital services and expand coverage, achieving significant growth

I. AI in Enterprise Contracts: Legal Framework     The use of AI within enterprises for productivity-related functions, including legal drafting, automated negotiation processes, and large-scale data analysis, is presently regulated in India through existing statutory frameworks rather than through any AI-specific legislation. Indian law does not yet recognise a distinct legal regime governing AI-enabled contracts or the general deployment of AI in commercial operations. None

NBFCs that do not require RBI registration in India 1. The starting point: when is registration required? A company is treated as an NBFC if it satisfies the principal business criteria (commonly referred to as the “50-50 test”) and carries on the business of a non-banking financial institution. If it qualifies as an NBFC, it ordinarily requires a Certificate of Registration (CoR) under section 45IA of the RBI Act, 1934. The RBI’s consolidated framework for this is set out in

Executive Summary   On September 15, 2025, the Reserve Bank of India (“ RBI ”) issued a single, consolidated Master Direction (“ MD ”) to regulate Payment Aggregators (“ PAs ”) operating in India, bringing together rules for online, physical/point of sale and cross-border aggregation in a coherent framework. The MD applies to all banking, non-banking (Indian), and scheduled commercial banking entities that interact with the three categories of PAs: physical, online and cross-

We are delighted to share this week's AKP Banking & Finance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in. 1.              Regulatory Updates   1.1.          India   Reserve Bank of India (RBI)   1.1.1.      RBI issues Statement on Developmental and Regulatory Policies Reserve Bank of India (“ RBI ”) issued its Statement on Developmental and Regulatory Policies setting out a pipeline of draft measures for public consultation across

We are delighted to share this week's AKP Corporate & Compliance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in. 1.              Labour Law   1.1.        Centre tells Delhi High Court Industrial Relations Code rules will be finalised by February-end Central Government informed the Delhi High Court that the rules under the Industrial Relations Code, 2020 would be finalised by the end of February, and said it had issued a notificatio