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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