## Report on The Banking Laws Amendment Act, 2025
**1. Executive Summary:**
This report analyzes *The Banking Laws Amendment Act, 2025* based on the official gazette notification. The Act amends several existing banking laws, including the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the Banking Companies Acquisition and Transfer of Undertakings Act of 1970 and 1980. Key changes include revisions to the definitions of 'fortnight' for reporting purposes, adjustments to minimum capital requirements for certain banking activities, modifications to nomination rules for bank deposits and lockers, and updates related to the transfer of unclaimed funds and shares to the Investor Education and Protection Fund (IEPF). The amendments primarily target improving regulatory clarity, enhancing depositor rights, and aligning banking practices with updated corporate laws.
**2. Introduction:**
This report aims to provide an informative overview of *The Banking Laws Amendment Act, 2025* as passed by the Houses of Parliament and assented to by the President on April 15, 2025. The analysis is based solely on the provided text of the Act and focuses on its objectives, key provisions, target audience, and potential impact.
**3. Policy Overview:**
* This is an **Amendment Act.**
* The original policies being amended are:
* The Reserve Bank of India Act, 1934
* The Banking Regulation Act, 1949
* The State Bank of India Act, 1955
* The Banking Companies Acquisition and Transfer of Undertakings Act, 1970
* The Banking Companies Acquisition and Transfer of Undertakings Act, 1980.
* **Core Objective(s):** Based on the text, the objectives appear to be:
* To update regulations related to banking operations and reporting.
* To modify and enhance regulations concerning deposit accounts and locker facilities.
* To streamline the transfer of unclaimed funds and shares to the Investor Education and Protection Fund.
* To align certain banking laws with the Companies Act, 2013.
**4. Background and Rationale:**
The rationale for these specific amendments appears to be driven by the need to:
* **Modernize reporting frequency:** By changing references from "alternate Fridays" to "last day of the fortnight", the act seeks to provide greater clarity.
* **Increase minimum capital requirements:** By increasing the minimum capital requirements for certain banking activities, the act may be trying to ensure financial stability and greater protection for depositors.
* **Enhance depositor rights:** The provisions relating to nomination for deposits and lockers have been expanded to allow for multiple nominees with specified proportional allocation, enhancing the rights and options available to depositors.
* **Align with updated legislation:** References to the Companies Act, 1956 are replaced with references to the Companies Act, 2013, bringing the banking laws in line with current corporate governance standards.
* **Improve management of unclaimed assets:** Amendments regarding the transfer of unclaimed dividends and shares to the Investor Education and Protection Fund aim to ensure that these assets are managed according to current regulations.
**5. Key Provisions / Changes:**
The key changes introduced by *The Banking Laws Amendment Act, 2025* are:
* **Reserve Bank of India Act, 1934:**
* **Change:** Modifies the definition of "fortnight" in Section 42 and replaces references to "alternate Friday" with "last day of each fortnight" in several instances. Omits the third proviso and subsection 2A.
* **Effect:** Streamlines reporting requirements, shifting from bi-weekly Friday-based reporting to fortnight-end reporting.
* **Banking Regulation Act, 1949:**
* **Change:** Amends Section 5 to increase the minimum capital requirement in clause (ne)(i) from "five lakhs of rupees" to "two crore rupees or such other amount as may be notified in the Official Gazette by the Central Government".
* **Effect:** Increases the minimum capital required for banking operations and increases Central Government authority.
* **Change:** Amends Section 10A (2A)(i) to extend the term limit for directors of cooperative banks to "ten years."
* **Effect:** Gives directors of cooperative banks more job security.
* **Change:** Amends Section 16(3) to allow a director of a central cooperative bank elected to the board of the state cooperative bank in which he is a member to be on the board.
* **Effect:** Changes regulations on who can sit on a bank's board.
* **Change:** Amends Section 18 to change "last Friday" and "alternate Fridays" to "last day" and "last day of the fortnight".
* **Effect:** Clarifies reporting frequency.
* **Change:** Amends Section 24, 25, 27 to change "Friday" to "day".
* **Effect:** Clarifies reporting frequency.
* **Change:** Amends Section 45ZA to allow for multiple nominees (up to four) for bank deposits, either successively or simultaneously. New subsections 1A and 1B provide rules for multiple nominees.
* **Effect:** Empowers depositors with more flexibility in designating beneficiaries and how the deposit is split.
* **Change:** Amends Section 45ZC to allow for multiple nominees for lockers.
* **Effect:** Empowers depositors with more flexibility in designating beneficiaries and how the deposit is split.
* **Change:** Substitutes Section 45ZE to allow for multiple nominees for lockers.
* **Effect:** Empowers depositors with more flexibility in designating beneficiaries and how the deposit is split.
* **Change:** Inserts Section 45ZG which clarifies the order of priority for successive nominees under sections 45ZA, 45ZC, and 45ZE.
* **Effect:** Clarifies the order of priority of beneficiaries.
* **Change:** Amends Section 56 to omit clause (nb).
* **Effect:** Removes redundant language.
* **State Bank of India Act, 1955:**
* **Change:** Amends Section 38A to replace the word "dividend" with "money" in the marginal heading and replaces subsection 3. New subsections 3, 4, and 5 provide updated regulations for transferring unpaid or unclaimed money, shares, and bond amounts to the Investor Education and Protection Fund (IEPF).
* **Effect:** Updates terminology and aligns procedures for transferring unclaimed assets with the Companies Act, 2013.
* **Change:** Amends Section 41 to replace references to the Companies Act, 1956 with the Companies Act, 2013.
* **Effect:** Aligns banking laws with current corporate governance standards.
* **Banking Companies Acquisition and Transfer of Undertakings Act, 1970 and 1980:**
* **Change:** Amends Section 10 to replace references to the Companies Act, 1956 with the Companies Act, 2013. Also, it updates who can fix the pay of an auditor, changing it from the "Reserve Bank may fix in consultation with the Central Government" to "corresponding new bank may fix."
* **Effect:** Aligns banking laws with current corporate governance standards.
* **Change:** Amends Section 10B to replace the word "dividend" with "money" in the marginal heading and replaces subsection 3. New subsections 3 and 3A provide updated regulations for transferring unpaid or unclaimed money, shares, and bond amounts to the Investor Education and Protection Fund (IEPF). Also, it changes references to the Companies Act, 1956 to the Companies Act, 2013.
* **Effect:** Updates terminology and aligns procedures for transferring unclaimed assets with the Companies Act, 2013.
**6. Target Audience and Stakeholders:**
Based on the text, the direct stakeholders and target audience include:
* **Banks:** All banks regulated by the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 and 1980.
* **Depositors:** Individuals and entities holding deposits with banks.
* **Nominees:** Individuals designated as beneficiaries of bank deposits and locker contents.
* **Cooperative Banks:** Directors and stakeholders.
* **Auditors:** Those responsible for auditing financial institutions.
* **The Investor Education and Protection Fund (IEPF):** The entity receiving unclaimed funds and shares.
* **Central Government:** Responsible for notifications under the act.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Reserve Bank of India (RBI), individual banks, and the Central Government are the primary bodies responsible for implementing the changes.
* **Timelines/Procedures:** The Act will come into force on a date to be notified by the Central Government in the Official Gazette. Different provisions may have different commencement dates. Banks will need to update their systems and procedures to comply with the new regulations regarding reporting, minimum capital requirements, and nomination processes.
* **Amendment-Specific Implementation:** Banks will need to update their systems and procedures for reporting to align with the fortnight-end reporting schedule, update deposit and locker nomination forms to reflect the new rules allowing multiple nominees, and establish processes for transferring unclaimed assets to the IEPF according to the updated regulations.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* **Enhanced Regulatory Clarity:** The amendments aim to clarify definitions and reporting requirements, reducing ambiguity and promoting consistent application of banking regulations.
* **Increased Financial Stability:** Raising minimum capital requirements is expected to strengthen the financial health of banks.
* **Improved Depositor Rights:** The changes to nomination rules offer depositors greater flexibility and control over their assets, ensuring smoother transfer of funds to beneficiaries.
* **Efficient Management of Unclaimed Assets:** Streamlining the process of transferring unclaimed funds and shares to the IEPF ensures these assets are used for investor education and protection.
* **Alignment with Corporate Governance Standards:** Aligning banking laws with the Companies Act, 2013, will ensure that the financial sector is in line with current regulations.
**9. Conclusion:**
*The Banking Laws Amendment Act, 2025* introduces significant changes to the regulatory framework governing the banking sector. These amendments aim to modernize banking operations, protect depositor interests, and align banking practices with current corporate laws. The changes related to reporting frequency, minimum capital requirements, nomination procedures, and unclaimed asset transfers are particularly noteworthy and will require banks to adapt their systems and processes accordingly. The Act is expected to enhance the stability, efficiency, and transparency of the banking sector, benefiting both financial institutions and their customers.
Key Entities Referenced
MINISTRY OF LAW AND JUSTICE: Government organization responsible for legislative matters.
THE BANKING LAWS AMENDMENT ACT, 2025: Title of the Act being published.
THE BANKING LANWoS. 16A oMfE 2N0D25MENT BILL, 2025: Bill name related to banking amendment.
HOUSES OF PARLIAMENT: The legislative body that passed the bill.
Reserve Bank of India Act, 1934: An Act being amended by the current legislation.
Banking Regulation Act, 1949: An Act being amended by the current legislation.
State Bank of India Act, 1955: An Act being amended by the current legislation.
Banking Companies Acquisition and Transfer of Undertakings Act, 1970: An Act being amended by the current legislation.
Banking Companies Acquisition and Transfer of Undertakings Act, 1980: An Act being amended by the current legislation.
Central Government: The governing body that can appoint dates for the Act.
Official Gazette: The official publication where notifications are published.
section 42: Specific section of the Reserve Bank of India Act, 1934 being amended.
section 5: Specific section of the Banking Regulation Act, 1949 being amended.
five lakhs of rupees: Monetary value being amended in the Banking Regulation Act of 1949
two crore rupees: Monetary value that replaces the previous one in the Banking Regulation Act of 1949
section 10A: Specific section of the Banking Regulation Act, 1949 being amended.
section 16: Specific section of the Banking Regulation Act, 1949 being amended.
Reserve Bank: Mention of the Reserve Bank in the context of the Banking Regulation Act of 1949
section 18: Specific section of the Banking Regulation Act, 1949 being amended.
section 24: Specific section of the Banking Regulation Act, 1949 being amended.
five per cent. per annum: Rate of penal interest mentioned in Section 24 of Banking Regulation Act.
section 25: Specific section of the Banking Regulation Act, 1949 being amended.
section 27: Specific section of the Banking Regulation Act, 1949 being amended.
section 45ZA: Specific section of the Banking Regulation Act, 1949 being amended.
section 45ZC: Specific section of the Banking Regulation Act, 1949 being amended.
section 45ZE: Specific section of the Banking Regulation Act, 1949 being amended.
section 45ZG: Specific section of the Banking Regulation Act, 1949 being amended.
section 56: Specific section of the Banking Regulation Act, 1949 being amended.
Section 38A: Specific section of the State Bank of India Act, 1955 being amended.
Companies Act, 2013: Act mentioned in the context of the State Bank of India Act
Investor Education and Protection Fund: Fund established under section 125 of the Companies Act, 2013.
Section 41: Specific section of the State Bank of India Act, 1955 being amended.
Section 10: Specific section of the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 being amended.
Section 10B: Specific section of the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 being amended.
Section 10: Specific section of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 being amended.
Section 10B: Specific section of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 being amended.
Tribhuvan Sahkari University Act, 2025: Act mentioned in the corrigendum
jftLVªh lañ Mhñ ,yñ—¼,u½04@0007@2003—25 REGISTERED NO. DL—(N)04/0007/2003—25
सी.जी.-डी.xएxलx.G-अI.D-1H50x4x2x025-262453
CG-DL-E-15042025-262453
xxxGIDExxx
vlk/kkj.k
EXTRAORDINARY
Hkkx II — [k.M 1
PART II — Section 1
izkf/kdkj ls izdkf'kr
PUBLISHED BY AUTHORITY
lañ 16] ubZ fnYyh] eaxyokj] vizSy 15] 2025@pS= 25] 1947 ¼'kd½
No. 16] NEW DELHI, TUESDAY, APRIL 15, 2025/CHAITRA 25, 1947 (Saka)
bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 15th April, 2025/Chaitra 25, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
15th April, 2025 and is hereby published for general information:—
BillNo.110-F of 2024
THE BANKING LAWS (AMENDMENT) ACT, 2025
THE BANKING LANWoS. 1(6A oMfE 2N0D25MENT) BILL, 2025
(AS PASSED BY THE HOUSES OF PARLIAMENT) [15th April, 2025.]
A
An Act further to amend the Reserve Bank of India Act, 1934, the
BILL
Banking Regulation Act, 1949, the State Bank of India Act, 1955,
furtherthteo Bamanekndingth eCoRmesperavneieBsa (nAkcoqfuIinsditiiaonA catn,d1 9T3r4a,ntshfeerB oafn Ukinngd eRretgaukliantigosn)
AAcct,t ,1 199479,0 tahned Stthaete B Banankkin ogf CIondmiap aAnciet,s 1(9A5c5q, utihsei tiBoann aknindg TCraonmspfaenr ioesf
(Acquisition and Transfer of Undertakings) Act, 1970 and the Banking
Undertakings) Act, 1980.
Companies (Acquisition and Transfer of Undertakings)Act, 1980.
BE it enacted by Parliament in the Seventy-sixth Year of the Republic
BEit enacted byParliament in the Seventy-sixth Year of the Republic of India
of India as follows:—
asfollows:––
CHAPTERI
PRELIMINARY
1.(1)ThisActmaybe called the Banking Laws (Amendment)Act, 2025. Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint:2
2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
Provided that different dates may be appointed for different provisions of this
Act, and any reference in any such provision to the commencement of this Act, shall
be construed as a reference to the coming into force of that provision.
CHAPTER II
AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934
Amendment of 2.In the Reserve Bank of India Act, 1934, in section 42,— 2 of 1934.
section 42.
(a) in sub-section (1), in the Explanation, for clause (b), the following
clause shall be substituted, namely:—
‘(b) “fortnight” means the period from the first day to the fifteenth
day of each calendar month or sixteenth day to the last day of each
calendar month, both days inclusive;’;
(b)in sub-section (2),—
(i)in the long line,—
(A)for the words “each alternate Friday”, the words “the last
day of each fortnight” shall be substituted;
(B) for the words “seven days”, the words “five days” shall
be substituted;
(ii)in the second proviso,—
(A)for the words “such alternate Friday”, the words “the last
day of any such fortnight” shall be substituted;
(B) for the words “that Friday”, the words “the last day of
that fortnight” shall be substituted;
(iii)the third proviso shall be omitted;
(c)sub-section (2A) shall be omitted.
CHAPTER III
AMENDMENTS TO THE BANKING REGULATION ACT, 1949
Amendment of 3. In the Banking Regulation Act, 1949 (hereafter in this Chapter referred to 10 of 1949.
section 5. as the Banking Regulation Act of 1949), in section 5, in clause (ne), in
sub-clause (i), for the words “five lakhs of rupees”, the words “two crore rupees or
such other amount as may be notified in the Official Gazette by the Central
Government” shall be substituted.
Amendment of 4.In the Banking Regulation Act of 1949, in section 10A, in sub-section (2A),
section 10A. in clause (i), after the words “eight years”, the words “and ten years in case of
aco-operative bank” shall be inserted.
Amendment of 5. In the Banking Regulation Act of 1949, in section 16, in sub-section (3),
section 16. after the words “Reserve Bank”, the following shall be inserted, namely:—
“or the director of a central co-operative bank elected to the Board of the
state co-operative bank in which he is a member”.
Amendment of 6.In the Banking Regulation Act of 1949, in section 18,—
section 18.
(a)in sub-section (1),—
(i)for the words “last Friday”, the words “last day” shall besubstituted;
(ii)for the words “alternate Fridays”, the words “the last day of the
fortnight” shall be substituted;3
Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(iii)for the words “such Fridays or if any such Friday”, the words
“the last day of the fortnight or if the last day of any such fortnight” shall
be substituted;
(b) in the Explanation, for clause (b), the following clause shall be
substituted, namely:—
‘(b) “fortnight” shall mean the period from the first day to the
fifteenth day of each calendar month or sixteenth day to the last day of
each calendar month, both days inclusive;’.
7.In the Banking Regulation Act of 1949, in section 24,— Amendment of
section 24.
(a) in sub-section (2A), for the word “Friday”, the word “day” shall be
substituted;
(b) in sub-section (3), for the words “each alternate Friday during the
month, or if any such Friday”, the words “the last day of each fortnight during
the month, or if the last day of any such fortnight” shall be substituted;
(c)in sub-section (4),—
(i) in clause (a), for the words “any alternate Friday or, if such
Friday”, the words “the last day of any fortnight or, if the last day of any
such fortnight” shall be substituted;
(ii)for clause (b), the following clause shall be substituted, namely:—
“(b) if the default occurs again on the last day of the next
succeeding fortnight, or, if the last day of such fortnight is a public
holiday, on the preceding working day, and continues on the last
day of the succeeding fortnights or preceding working days, as the
case may be, the rate of penal interest shall be increased to a rate
of five per cent. per annum above the bank rate on each such
shortfall in respect of last day of that fortnight and last day of each
succeeding fortnight or preceding working day, if last day of such
fortnight is a public holiday, on which the default continues.”;
(d)in sub-section (7),—
(i) for the words “next succeeding alternate Friday, or if such
Friday is a public holiday”, the words “last day of the next succeeding
fortnight, or if the last day of such fortnight is a public holiday” shall be
substituted;
(ii) for the words “subsequent alternate Friday”, the words “last
day of every subsequent fortnight” shall be substituted.
8.In the Banking Regulation Act of 1949, in section 25,— Amendment of
section 25.
(a) in sub-section (1), for the words “last Friday of every quarter or, if
that Friday”, the words “last day of every quarter or, if that day” shall be
substituted;
(b)in sub-section (2), for the words “last Friday of the previous quarter,
or, if that Friday”, the words “last day of the previous quarter, or, if that day”
shall be substituted.
9.In the Banking Regulation Act of 1949, in section 27, in sub-section (1), for Amendment of
the words “last Friday of every month or if that Friday”, the words “last day of every section 27.
month, or, if that day” shall be substituted.
10.In the Banking Regulation Act of 1949, in section 45ZA,— Amendment of
section 45ZA.
(a) in sub-section (1), for the words “one person”, the words “one or
more persons not exceeding four, either successively or simultaneously” shall
be substituted;4
4 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
(b) after sub-section (1), the following sub-sections shall be inserted,
namely:—
“(1A) Where the nomination is made successively in favour of
more than one person under sub-section (1), the nomination shall be
effective only in favour of one person in the order of priority specified
in section 45ZG.
(1B) Where the nomination is made simultaneously in favour of
more than one person under sub-section (1), the nomination shall be
effective in favour of all such persons in proportion to which it is
declared, and the following terms and conditions shall apply, namely:—
(a)the nomination shall not be made in favour of more than
four persons;
(b) the nomination shall explicitly state the proportion of
amount of deposit in percentage in favour of each nominee;
(c) the nomination shall be made in respect of the whole
amount of deposit;
(d) if any nominee dies before receiving deposit from the
banking company, the nomination in respect of such nominee
alone shall become ineffective and the amount of deposit
purported to be nominated in favour of deceased nominee shall be
treated as if nomination had not been made in respect of that
portion of deposit,
and any nomination which does not comply with any of the terms and
conditions specified in clauses (a) to (c), shall be invalid, as if nomination had
not been made by the depositor or all the depositors together, as the case may
be.”.
Amendment of 11.In the Banking RegulationAct of 1949, in section 45ZC, insub-section (1),
section 45ZC. for the words “one person”, the words “one or more persons not exceeding four,
successively,” shall be substituted.
Amendment of 12.In the Banking Regulation Act of 1949, in section 45ZE, forsub-section (1),
section 45ZE. the following sub-section shall be substituted, namely:—
“(1) Where one or more individuals hire a locker from a banking
company, whether such locker is located in the safe deposit vault of such
banking company or elsewhere, the individual or, as the case may be, all the
individuals together, may nominate one or more persons not exceeding four,
successively, to whom, in the event of the death of the sole hirer or the death
of all the hirers, the banking company may give access to the locker and liberty
to remove the contents of the locker.”.
Insertion of 13.In the Banking Regulation Act of 1949, after section 45ZF, the following
new section section shall be inserted, namely:––
45ZG.
“45ZG. (1) Where the nomination is made in favour of more than one
Priority of
successive person successively under sub-section (1) of section 45ZA or sub-section (1)
nominations. of section 45ZC or sub-section (1) of section 45ZE, the nomination shall be
effective only in favour of one person in the following order of priority,
namely:––
(a) nomination of the first nominee shall be effective if that
nominee survives the person or persons who made the nomination;
(b)nomination of the second nominee shall become effective only
after the death of the first nominee;5
Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
(c) nomination of any nominee lower in the order of nomination
shall become effective only after the death of all the nominees whose
names are higher in the order of nomination.
(2) Where the order of nomination is not mentioned, persons shall be
deemed to have been nominated in the order in which their names appear in
the nomination.
(3) The provisions of this section shall not apply to the nominations
made simultaneously in favour of more than one person under sub-section (1)
of section 45ZA.”.
14.In the Banking Regulation Act of 1949, in section 56,— Amendment of
section 56.
(a) in clause (c), for sub-clause (ii), the following sub-clause shall be
substituted, namely:—
“(ii) clause (nb) shall be omitted;”;
(b)in clause (j) relating to substitution of section 18, in sub-section (1),—
(i) for the words “last Friday”, the words “last day” shall be
substituted;
(ii)for the words “alternate Friday”, the words “the last day of the
fortnight” shall be substituted;
(iii)for the words “such Fridays or if any such Friday”, the words
“the last day of the fortnight or if the last day of any such fortnight” shall
be substituted;
(iv)in the Explanation, for clause (b), the following clause shall be
substituted, namely:—
‘(b) “fortnight” shall mean the period from the first day to
the fifteenth day of each calendar month or sixteenth day to the last
day of each calendar month, both days inclusive;’.
CHAPTER IV
AMENDMENTS TO THE STATE BANK OF INDIAACT, 1955
23 of 1955. 15.In the State Bank of India Act, 1955, in section 38A,— Amendment of
section 38A.
(a)in the marginal heading, for the word “dividend”, the word “money”
shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The State Bank shall transfer, in accordance with the rules
made under section 124 of the Companies Act, 2013, to the Investor
18 of 2013.
Education and Protection Fund established under section 125 of the
said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the State Bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the State Bank which remain unpaid or unclaimed for a period
of seven years from the date such interest or such redemption
amount became due for payment.6
6 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
(4) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
section 125 of the Companies Act, 2013. 18 of 2013.
(5) The money transferred under sub-section (3) to the Investor
Education and Protection Fund shall be utilised for the purposes and in
the manner specified in section 125 of the Companies Act, 2013.”. 18 of 2013.
16.In the State Bank of India Act, 1955, in section 41,—
Amendment of 23 of 1955.
section 41. (a) in sub-section (1), for the words and figures “section 226 of the
Companies Act, 1956”, the words and figures “section 141 of the Companies 1 of 1956.
Act, 2013” shall be substituted; 18 of 2013.
(b) for sub-section (2), the following sub-section shall be substituted,
namely:—
“(2) The auditors shall receive such remuneration as the State Bank
may fix.”.
CHAPTER V
AMENDMENTS TO THE BANKING COMPANIES
(ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970
Amendment of 17. In the Banking Companies (Acquisition and Transfer of Undertakings)
section 10. Act, 1970 (hereafter in this Chapter referred to as the Act of 1970), in section 10, in 5 of 1970.
sub-section (2),—
(a) for the words and figures “section 226 of the Companies Act, 1956”, the 1 of 1956.
words and figures “section 141 of the Companies Act, 2013” shall be substituted; 18 of 2013.
(b)for the words “Reserve Bank may fix in consultation with the Central
Government”, the words “corresponding new bank may fix” shall be substituted.
Amendment of 18.In the Act of 1970, in section 10B,—
section 10B.
(a)in the marginal heading, for the words “dividend to Unpaid Dividend
Account”, the word “money” shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The corresponding new bank shall transfer, in accordance
with the rules made under section 124 of the Companies Act, 2013, to 18 of 2013.
the Investor Education and Protection Fund established under section 125
of the said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the corresponding new bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the corresponding new bank which remain unpaid or unclaimed
for a period of seven years from the date such interest or such
redemption amount became due for payment.
(3A) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
section 125 of the Companies Act, 2013.”; 18 of 2013.
(c)in sub-section (4), for the words, figures and letter “section 205C of
the Companies Act, 1956”, the words and figures “section 125 of the 1 of 1956.
Companies Act, 2013” shall be substituted. 18 of 2013.7
Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7
CHAPTER VI
AMENDMENTS TO THE BANKING COMPANIES
(ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980
19. In the Banking Companies (Acquisition and Transfer of Undertakings) Amendment of
40 of 1980. Act, 1980 (hereafter in this Chapter referred to as the Act of 1980), in section 10, in section 10.
sub-section (2),––
(a) for the words and figures “section 226 of the Companies Act, 1956”, the
1 of 1956.
18 of 2013. words and figures “section 141 of the Companies Act, 2013” shall be substituted;
(b) for the words “Reserve Bank may fix in consultation with the Central
Government”, the words “corresponding new bank may fix” shall be substituted.
20.In the Act of 1980, in section 10B,— Amendment of
section 10B.
(a)in the marginal heading, for the words “dividend to Unpaid Dividend
Account”, the word “money” shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The corresponding new bank shall transfer, in accordance
18 of 2013. with the rules made under section 124 of the Companies Act, 2013, to
the Investor Education and Protection Fund established under
section 125 of the said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the corresponding new bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the corresponding new bank which remain unpaid or unclaimed
for a period of seven years from the date such interest or such
redemption amount became due for payment.
(3A) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
18 of 2013. section 125 of the Companies Act, 2013.”;
(c)in sub-section (4), for the words, figures and letter “section 205C of
1 of 1956. the Companies Act, 1956”, the words and figures “section 125 of the Companies
18 of 2013. Act, 2013” shall be substituted.
————
—————
DR. RAJIV MANI,
Secretary to the Govt. of India.
The above Bill has been passed by the Houses of Parliament.
————
CORRIGENDUM
Datedthe In the “Tribhuvan” Sahkari University Act, 2025 (11 of 202 S5 p), e aas k ep ru .b-
lished in the Gazette of India, Extraordinary, Part II, Section 1, dated the 3rd
April, 2025, Issue No. 11, at p—ag—e 2—, l—ine— 6, for “imoprtance”, read “importance”.
I assent to this Bill.
Dated the President.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—7GI(S4)—15-4-2025.