| Category | Details |
|---|---|
| Effective Date | August 1, 2025 |
| Legislation Name | Banking Laws (Amendment) Act, 2025 |
| Notification Date | April 15, 2025 (Gazette Notification S.O. 3494(E) on July 29, 2025) |
| Amended Acts | - Reserve Bank of India Act, 1934 - Banking Regulation Act, 1949 - State Bank of India Act, 1955 - Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 & 1980 |
| Key Provisions | 1. Redefining "Substantial Interest" - Threshold revised from ₹5 lakh to ₹2 crore (last updated in 1968) 2. Longer Tenure for Cooperative Bank Directors - Maximum tenure extended from 8 to 10 years (excludes chairpersons & whole-time directors) 3. Transfer of Unclaimed Amounts to IEPF - PSBs can now transfer unclaimed shares, interest, bond redemptions to Investor Education and Protection Fund (IEPF) 4. Enhancing Audit Quality in PSBs - PSBs can decide remuneration for statutory auditors to attract high-quality professionals |
| Objectives | - Strengthen governance in banking - Enhance depositor & investor protection - Improve audit quality in PSBs - Ensure constitutional compliance in cooperative banks |
| Impacted Entities | - Public Sector Banks (PSBs) - Cooperative Banks |
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