Banking Laws (Amendment) Act, 2025: Crucial sections to take effect from December 15. Details here

The Ministry of Finance (Department of Financial Services) has announced that certain provisions of the Banking Laws (Amendment) Act, 2025, will come into effect from 15th December 2025. The sections to be enforced include Sections 2, 6, 7, 8, 9, and 14.

“In exercise of the powers conferred by sub-section (2) of section 1 of the Banking Laws (Amendment) Act, 2025 (16 of 2025), the Central Government hereby appoints the 15th day of December, 2025 as the date on which the provisions of sections 2, 6, 7, 8, 9 and 14 of the said Act shall come into force,” Ministry of Finance said in a notification on December 8.

The newly activated Sections 2, 6, 7, 8, 9, and 14 of the Banking Laws (Amendment) Act, 2025, collectively overhaul India’s banking reporting framework by shifting all CRR, SLR, monthly, quarterly, and cooperative-bank returns to uniform calendar-based timelines.

Section 2 redefines the fortnight for CRR reporting, while Sections 6 and 7 modernise SLR requirements and introduce clearer penalty mechanisms.

Sections 8 and 9 replace outdated last-Friday systems by mandating that quarterly and monthly returns be filed on the last day of each quarter and month.

Most significantly for cooperative banks, Section 14 transforms their reporting cycle from the old alternate-Friday method to the modern “last day of the fortnight” system.

The government has directed all banking companies to comply with these provisions from 15th December 2025. These measures are intended to strengthen governance, protect depositors, and ensure statutory compliance in the banking sector.

The Banking Laws (Amendment) Act, 2025, amends five acts, viz. 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 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

The Banking Laws (Amendment) Act, 2025 introduces key reforms focused on depositor security, governance strength, and faster resolution of stress.

Beyond structural updates, the 2025 Act reinforces India’s ongoing efforts to enhance banking oversight and governance. The changes are rooted in practical challenges visible over the last decade.

The provisions of the act were notified in two stages: Sections 3 to 5 and 15-20 were covered in Stage 1 (1st August, 2025) while Sections 10 to 13 were covered in Stage 2 (1st November 2025).