31st July 2025 (13 Topics)
1
Jul
2
Jul
3
Jul
4
Jul
5
Jul
7
Jul
8
Jul
9
Jul
10
Jul
11
Jul
12
Jul
14
Jul
15
Jul
16
Jul
17
Jul
18
Jul
19
Jul
21
Jul
22
Jul
23
Jul
24
Jul
25
Jul
26
Jul
28
Jul
29
Jul
30
Jul
31
Jul
Banking Laws (Amendment) Act, 2025
Context:
Select provisions of the Banking Laws (Amendment) Act, 2025 come into effect from 1st August 2025 to reform governance norms and enhance depositor safeguards in banks.
Legislative Scope and Amendments:
- The Act amends five key legislations: RBI Act, 1934; Banking Regulation Act, 1949; SBI Act, 1955; and Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980.
- A total of 19 amendments are incorporated, aiming to modernize the regulatory framework.
- Sections 3, 4, 5, 15–20 of the Act are notified to be effective from 1st August 2025 via Gazette Notification S.O. 3494(E).
Key Governance and Financial Reforms:
- The threshold of ‘substantial interest’ is revised upward from ?5 lakh (unchanged since 1968) to ?2 crore to reflect inflationary adjustments.
- Statutory auditors’ remuneration in PSBs is now institutionally permitted, enabling recruitment of high-quality audit professionals.
- PSBs are empowered to transfer unclaimed shares, interest, and bond redemption amounts to the Investor Education and Protection Fund (IEPF), aligning with the Companies Act.
More Articles
Courses
Study
Notes
Home
Resources
More
