Banking & Finance Law
Banking & Finance Law
Regulatory Compliance & Transactional Excellence
India’s banking and financial services sector operates within one of the world’s most complex regulatory frameworks — governed by the RBI, SEBI, IRDAI, PFRDA, and multiple sector-specific statutes. SIRI Law LLP advises banks, NBFCs, fintech companies, payment aggregators, investment firms, and borrowers on regulatory compliance, transactions, enforcement defence, and digital finance law.
Overview
Banking & Finance: Where Regulation Meets Commerce
India’s financial sector regulation has undergone fundamental transformation — from the RBI’s Master Directions governing NBFCs and payment systems, to SEBI’s enhanced disclosure regime, to the integration of digital finance and cryptocurrency into the regulatory perimeter. Each development creates compliance obligations and, for those who fail to navigate them, enforcement risk.
SIRI Law LLP’s banking and finance practice advises on the full spectrum: from NBFC licensing and RBI compliance to complex lending transactions, securitisation, and enforcement proceedings before the Debt Recovery Tribunal. Our fintech practice advises on payment aggregator licensing, open banking compliance, and digital lending regulation.
The intersection of banking law with cybersecurity law and data privacy is increasingly critical — payment systems must comply with RBI’s data localisation directions, digital lenders with DPDPA consent obligations, and all financial institutions with CERT-In’s cybersecurity incident reporting requirements. Our integrated practice addresses this overlap seamlessly.
AI & Fintech Banking Advisory
Digital Finance & AI in Banking
AI-powered credit scoring, algorithmic trading, robo-advisory, and digital lending raise novel regulatory questions — around explainability of credit decisions, DPDPA consent for financial data processing, and RBI guidance on AI in regulated entities.
We advise on regulatory compliance for AI-powered financial products and on the legal frameworks governing digital asset custody, CBDC preparation, and cryptocurrency exchange operations.
Services
Banking & Finance Legal Services
- NBFC licensing — application, compliance, and renewal
- RBI regulatory compliance — Master Directions, circulars, inspections
- Payment aggregator and payment gateway licensing (RBI PA framework)
- Digital lending regulation — RBI Digital Lending Guidelines
- Open banking and Account Aggregator framework advisory
- SEBI compliance — broker-dealer, investment adviser, AIF, PMS
- FEMA — inbound and outbound investment, ECB, remittances
- Loan documentation — term loans, working capital, structured finance
- Security creation and enforcement — mortgage, pledge, hypothecation
- Debt Recovery Tribunal (DRT) — creditor and borrower representation
- NCLT/NCLAT — insolvency and bankruptcy proceedings
- SARFAESI Act enforcement — secured creditor remedies
- Securitisation and assignment of receivables
- Foreign investment in financial services — RBI, FEMA, DPIIT
- Crypto/VDA legal advisory — exchange operations, custody, AML
- CBDC and digital currency regulatory advisory
- AI credit scoring compliance — RBI explainability guidance
- Cybersecurity compliance for RBI-regulated entities
Why SIRI Law LLP
Our Banking & Finance Practice Advantage
RBI & SEBI Regulatory Depth
Direct experience with RBI inspection response, SEBI enforcement proceedings, and FEMA compounding — not just advisory on what the regulations say.
Integrated Fintech Advisory
Banking regulation, data privacy, cybersecurity, and digital contract law in a single practice — essential for fintech companies where all these disciplines intersect.
Transactional Precision
Loan documentation, security creation, and structured finance — drafted with the precision that banking transactions demand and the litigation experience to know what will be enforced in court.
DRT & Insolvency Expertise
Creditor-side and debtor-side representation before DRT, DRAT, and NCLT — with a track record in recovery and restructuring proceedings.
AI-Ready Financial Compliance
Advisors who understand AI in banking — from credit scoring explainability to robo-advisory regulation — and can bridge the gap between technology teams and regulators.
Representative Matters
Typical Engagements
All matters described generically to protect client confidentiality.
NBFC – RBI Regulatory Response
Advised an NBFC on responding to an RBI inspection, managing regulatory correspondence, and implementing a remediation programme — avoiding formal enforcement action.
Payment Aggregator Licensing
Guided a fintech startup through the RBI payment aggregator authorisation process — including compliance programme design, net worth documentation, and system audit coordination.
DRT Recovery – Secured Creditor
Represented a scheduled bank in DRT recovery proceedings — obtaining a Recovery Certificate and coordinating SARFAESI enforcement of secured assets to achieve substantial recovery.
Digital Lending – RBI Compliance
Advised a digital lending platform on restructuring its lending model to comply with RBI’s Digital Lending Guidelines — including LSP arrangements, escrow requirements, and KYC framework.
Crypto Exchange – AML/KYC Framework
Advised a cryptocurrency exchange on AML/KYC compliance framework under PMLA obligations — including transaction monitoring, STR filing procedures, and VDA reporting requirements.
Frequently Asked Questions
What RBI licence does a digital lending company need?
Digital lending companies that lend from their own balance sheet require an NBFC licence from RBI. Those that operate as lending service providers (LSPs) — facilitating loans for licensed lenders — do not require an NBFC licence but must comply with RBI’s Digital Lending Guidelines governing disclosure, disbursal, and collection practices. We advise on the appropriate licensing pathway for your business model.
How does SARFAESI Act enforcement work?
Under SARFAESI, a secured creditor (bank or NBFC with security interest) can enforce security without court intervention after 60 days’ notice to the borrower. The creditor can take possession of secured assets, manage them, and sell them to recover dues. The process can be challenged before DRT by the borrower. We advise on both creditor enforcement strategy and borrower defences.
Do cryptocurrency exchanges in India require RBI approval?
Crypto exchanges operate in a regulatory grey zone. They are not currently required to obtain RBI approval but must comply with PMLA obligations (AML/KYC) as Reporting Entities, and are subject to SEBI’s proposed regulatory framework for VDAs under the VDA Service Provider guidelines. Tax obligations under VDA tax rules apply. We advise on current compliance obligations and the evolving regulatory framework.
What is the RBI framework for AI use in credit decisioning?
The RBI has issued guidance requiring regulated entities using AI/ML in credit decisioning to ensure explainability — the ability to explain credit decisions to customers in plain language. This impacts AI-powered lending platforms. We advise on compliant AI credit decisioning architecture and the documentation required to demonstrate explainability to RBI and affected customers.
Navigate India's Financial Regulatory Landscape with Confidence
All consultations are confidential. We advise on compliance, transactions, and enforcement matters.
Also see: Corporate Law · Taxation & Compliance