New Delhi | Dec 10,2025 | SKY LINK TIMES
Banking Law Amendment Act 2025:
The Central Government has officially notified that key provisions of the Banking Law Amendment Act 2025 will come into effect from December 15, 2025, marking a major overhaul of India’s banking regulatory framework. The notification, issued by the Department of Financial Services, activates amendments aimed at modernising reporting cycles, improving compliance efficiency and aligning cooperative banks with mainstream banking standards.
The Act had earlier received Presidential assent on April 15, 2025.
Table of Contents
Cooperative Banks Shift to New Reporting Cycle
One of the most significant changes taking effect is the enforcement of Section 14, which amends Section 56 of the Banking Regulation Act, 1949.
This reform replaces the outdated alternate-Friday reporting system for cooperative banks with a uniform “last day of the fortnight” reporting cycle, bringing them in line with commercial banks.
The amendment also eliminates several obsolete provisions that no longer align with current regulatory practices. As a result, cooperative banks will now follow modern return-filing norms, including:
1.Quarterly returns based on the last day of each quarter
2.Monthly returns filed as on the last calendar day of every month
According to the government, these changes will ensure simplified compliance, clearer supervision, and greater regulatory uniformity across the cooperative banking sector.
CRR and SLR Reporting Modernised
Beyond cooperative banks, multiple amendments impacting the entire banking industry—including public sector, private sector and foreign banks—will also become operational from December 15.
CRR Reporting Revisions
Under Section 2, a major change is introduced to the Reserve Bank of India Act, 1934, specifically revising Section 42.
The amendment:
Redefines “fortnight”
Shifts CRR (Cash Reserve Ratio) reporting to the last day of each fortnight
This replaces earlier staggered reporting structures and brings CRR calculations in sync with the updated nationwide framework.
SLR Reporting Updates
Two key sections reshape statutory liquidity reporting:
Section 6, amending Section 18 of the Banking Regulation Act, updates liquidity requirements for non-scheduled banks
Section 7, revising Section 24, modernises SLR reporting timelines and introduces a clearer penalty mechanism for delayed compliance
These changes aim to create a transparent and uniform supervisory environment across all banking categories.
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Uniform Monthly & Quarterly Returns Across Banks
Further simplifying statutory filings:
Section 8 updates Section 25 to mandate quarterly returns based on the last calendar quarter day
Section 9, amending Section 27, requires monthly returns as on the last calendar day of every month
This eliminates the older last-Friday-based reporting system and standardises return-filing across the industry.
Reforms to Strengthen Oversight and Reduce Complexity
Collectively, the December 15 reforms are expected to:
Streamline regulatory submissions
Remove outdated procedures
Improve consistency across institutions
Enhance supervisory oversight
Reduce compliance confusion for banks
The government has stated that these amendments are part of a broader effort to modernise India’s banking regulatory framework and ensure better alignment with global practices.
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