Govt Notifies 15th Dec. 2025 for Banking Laws Amendment Enforcement

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  • Last Updated on 10 December, 2025

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Banking Laws Amendment Act enforcement

Notification no. S.O. 5659(E); Dated: 08.12.2025

1. Commencement Timeline

The Central Government has notified 15 December 2025 as the date on which the following provisions of the Banking Amendment Act, 2025 shall come into force:

  • Section 2
  • Section 6
  • Section 7
  • Section 8
  • Section 9
  • Section 14

These amendments formally operationalise changes to certain statutory computation methods, reporting cycles, and compliance timelines under banking law.

2. Acts Amended

The notified provisions amend, among others:

  • The Reserve Bank of India Act, 1934
  • The Banking Regulation Act, 1949

Both statutes are foundational to the measurement and supervision of liquidity, reserves, and regulatory reporting in India’s banking system.

3. Substitution of “Alternate Fridays”

A key harmonisation measure in the amendments is the replacement of statutory references to “alternate Fridays” with more conventional calendar references such as:

  • Last day of the fortnight
  • Last day of the month
  • Last day of the quarter

3.1 Rationale

This substitution:

  • Aligns statutory compliance schedules with standard accounting periods
  • Reduces interpretational ambiguity
  • Enhances consistency in supervisory reporting, reconciliation, and audit review

4. Rationalisation of Compliance Timelines

The amendments streamline timelines relating to:

  • Cash Reserve Ratio (CRR)
  • Statutory Liquidity Ratio (SLR)
  • Regulatory returns submitted to RBI
  • Assessment of penalties for delay or non-compliance

4.1 Regulatory Intent

The changes aim to:

  • Simplify regulatory computation requirements for banks
  • Improve operational clarity for treasury, finance, and compliance teams
  • Reduce administrative friction associated with legacy fortnight-based obligations
  • Support uniform supervisory oversight and predictability

5. Impact on Banks and Supervision

From 15 December 2025, banks must:

  • Align CRR/SLR calculations and reserve tracking with the last-day cycle
  • Integrate revised timelines into internal MIS, liquidity monitoring, and core banking modules
  • Adjust reporting calendars for returns, reconciliation, attestation, and supervisory disclosures
  • Ensure penalty calculations reflect the new statutory periods

The amendments also streamline RBI’s supervisory analytics, improving comparability across entities and enhancing systemic liquidity visibility.

6. Compliance Considerations

Banks and financial institutions should:

  • Update internal manuals, SOPs, and calendar controls
  • Reconfigure automation logic in treasury systems
  • Reassess cut-off workflows for reserve averaging, shortfalls, and remedial funding
  • Train operational teams on the new statutory cadence

Failure to integrate revised schedules may result in computational errors, delayed reporting, or supervisory findings.

Click Here To Read The Full Notification

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The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied