Centre Grants Temporary Exemption to SBI and Bank of Baroda Under Banking Regulation Act
The Department of Financial Services under the Ministry of Finance recently shared a notification (F. No. 7/9/2026-BOA.I) on January 30 regarding the temporary exemption granted to SBI and Bank of Baroda from the provisions of the Act.
The Central Government, using its powers under Section 53(1) of the Banking Regulation Act, 1949, and based on the recommendation of the Reserve Bank of India, has decided that the rule in Section 19(2) will not apply to the State Bank of India for now. As a result, SBI is allowed to hold more than 30% of the paid-up capital in the Indian Digital Payment Intelligence Corporation. This permission is valid until October 16, 2026.
The Central Government, using its power under Section 53(1) of the Banking Regulation Act, 1949, and following the recommendation of the Reserve Bank of India, has decided to temporarily exempt Bank of Baroda from the provisions of Section 19(2). As a result, the bank is permitted to hold more than 30% of the paid-up capital in the Indian Digital Payment Intelligence Corporation. This exemption will remain in force until October 16, 2026.