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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI has released a notification regarding Effective Date for the Banking Laws (Amendment) Act, 2025

29-Jul-2025 | S.O. 3494(E).

Reserve Bank of India (RBI) has released a notification regarding the effective date for the Banking Laws (Amendment) Act, 2025. The Sections 3,4,5,15,16,17,18,19 and 20 of the said Act shall come into force. Some of following sections of the Banking Laws (Amendment) Act, 2025 which will come into force on1st August 2025: a. Section 3: Amendment of Section 5 (ne)(i) of the Banking Regulation Act, 1949 - The limit of Rs. 5 lakhs for substantial interest in a company has been increased to Rs. 2 crores or 10% of the paid-up capital, whichever is less. b. Section 4: Amendment of Section 10A (2A)(i) of the Banking Regulation Act, 1949 - The term for holding the office of the chairman or a whole-time director (regardless of title) on the board of directors has been increased from 8 years to 10 years. c. Section 5: Amendment of Section 16(3) of the Banking Regulation Act, 1949 - Prior to the amendment, Section 16 implied a banking company incorporated in India cannot have a person on its Board of Directors if that person is already a director in another banking company. However, this is not applicable to Directors appointed by the Reserve Bank. Through this amendment, exemption also applies to a director of a central co-operative bank who is elected to the Board of a state co-operative bank where he is a member. For more information, please refer to the gazette document.

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