MINISTRY OF FINANCE

The Banking Laws (Amendment) Act, 2025

By TEAM CIRCULAR EXPRESS • 15 Apr 2025

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#All India #Ministry of Finance #Transfer

The Banking Laws (Amendment) Act, 2025, amends several key banking legislations including the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949. It introduces changes to definitions like 'fortnight' and updates provisions regarding bank nominations, locker access, and the transfer of unclaimed money to the Investor Education and Protection Fund. The Act also aligns various sections with the Companies Act, 2013, regarding auditor remuneration and fund management. These amendments aim to streamline banking operations and enhance regulatory clarity. The Act received Presidential assent on April 15, 2025.

purpose of issuance

Legislative amendment

Most Important Details

The Act updates definitions for 'fortnight', modifies nomination rules for deposits and lockers (allowing up to four nominees), and mandates the transfer of unclaimed money, shares, and interest to the Investor Education and Protection Fund after seven years. It also updates references to the Companies Act, 2013, and provides for auditor remuneration.

issue for which issued

Legislative amendment of banking laws

is it guidelines or office order, or office memorandum

Act of Parliament

purpose of issue

To modernize and harmonize banking regulations with current legal frameworks like the Companies Act, 2013.

state other important details

Includes a corrigendum for the Tribhuvan Sahkari University Act, 2025.

All the Most Important details in the circular

Amendments to RBI Act 1934, Banking Regulation Act 1949, SBI Act 1955, and Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

its purpose it serves

Regulatory reform in the banking sector.