Centre Notifies Effective Date for Key Provisions of Banking Laws (Amendment) Act, 2025

The Ministry of Finance (Department of Financial Services) issued Notification No. S.O. 3494(E) dated July 29, 2025, announcing that key provisions of the Banking Laws (Amendment) Act, 2025 (Act No. 16 of 2025) will come into effect from August 1, 2025.

The notification has been published in the Gazette of India under the authority of the Central Government, in exercise of the powers granted by Section 1(2) of the Act. It brings into force important provisions from Sections 3, 4, 5, and 15 to 20 of the amendment law.

Provisions Coming into Force on August 1, 2025

According to the notification, the following sections of the Act will be enforced from August 1:

Sections 3 to 5: These sections amend the Banking Regulation Act, 1949, bringing changes to:

• Definitions and thresholds (e.g., increasing minimum capital requirements)
• Board composition in co-operative banks
• Reporting timelines for returns

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Sections 15 to 20: These bring amendments to:

• The State Bank of India Act, 1955
• The Banking Companies Acts of 1970 and 1980

These changes include:

• Revised rules on transfer of unclaimed dividends, interest, and shares to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013
• Updated rules on auditor appointments, aligning them with the Companies Act, 2013
• Expanded nomination rights for depositors and locker holders, allowing up to four nominees either successively or simultaneously, with clearly defined rules.

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