Govt Allows Excess Bank Shareholding in IDPIC till Oct 2026

Notification No. S.O. 461(E); Dated: 30.01.2026

The Central Government has notified an exemption, on the recommendation of the Reserve Bank of India (RBI), under section 53 of the Banking Regulation Act, 1949. The exemption relates to the applicability of section 19(2) of the Act in respect of specified shareholding limits.

1. Exemption from Shareholding Restrictions under Section 19(2)

Section 19(2) of the Banking Regulation Act, 1949, restricts a banking company from holding shares in any company beyond a prescribed percentage of its paid-up share capital. Pursuant to the notified exemption, the provisions of section 19(2) shall not apply to:

Bank of Baroda, and
State Bank of India,

in relation to their shareholding exceeding thirty per cent of the paid-up capital of the Indian Digital Payment Intelligence Corporation (IDPIC).

2. Entity Covered – Indian Digital Payment Intelligence Corporation

The exemption is specific to the shareholding of Bank of Baroda and State Bank of India in the Indian Digital Payment Intelligence Corporation (IDPIC) and does not extend to investments in any other entity.

3. Validity Period of the Exemption

The exemption has been granted for a limited period and shall remain valid up to 16 October 2026, unless withdrawn or modified earlier.

4. Regulatory Context and Implications

The exemption enables the concerned banks to continue holding a higher stake in IDPIC beyond the statutory threshold, supporting the operational and strategic objectives of the digital payments and financial intelligence framework, while remaining within the regulatory oversight of the RBI.

5. Key Takeaway

By exercising its powers under section 53 of the Banking Regulation Act, the Government has provided regulatory flexibility to Bank of Baroda and State Bank of India for a defined period, ensuring continuity in their investment in IDPIC without contravention of shareholding restrictions under section 19(2).