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BankingUPSC & State PSCNABARD / RBI

Banking Laws (Amendment) Act, 2025 Notified

31 July 20251 min read
BANKING & FINANCEBanking Laws(Amendment) Act,2025 Notified31 July 2025safalsetu.com

Why in the news

The Finance Ministry notified an Act modernising governance, audit and depositor protection in banking.

Key facts

  • Co-op change aligns with the 97th Constitutional Amendment; chairperson and full-time directors excluded.
  • PSBs may move unclaimed shares, interest and bond redemptions to IEPF.
  • PSBs set statutory auditor pay; RBI returns shift from weekly to fortnightly, monthly or quarterly.

Significance

  • Updates thresholds unchanged since 1968.
  • Better oversight of urban and rural co-op banks.
  • Greater depositor confidence.

Exam angle

  • New substantial interest limit: ₹2 crore.
  • Fund for unclaimed PSB assets: IEPF.

Test yourself

1. To what amount was the 'substantial interest' threshold in banks revised?

It rose from ₹5 lakh to ₹2 crore.

2. What is the new maximum tenure for cooperative bank directors (excluding chairperson and full-time directors)?

Tenure extends from 8 to 10 years.

3. Unclaimed shares and bond redemptions of PSBs can now be moved to which fund?

PSBs may transfer them to the Investor Education and Protection Fund.

This topic is part of Daily Current Affairs 31 July 2025 (16 topics).

All topics of the dayDay quizJuly 2025

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