Centre Grants Temporary Exemption to SBI and Bank of Baroda Under Banking Regulation Act:

Centre Grants Temporary Exemption to SBI and Bank of Baroda Under Banking Regulation Act

The Centre has temporarily exempted SBI and Bank of Baroda from Section 19(2) of the Banking Regulation Act 1949

Centre Grants Temporary Exemption to SBI and Bank of Baroda

authorVanshika vermadateFeb 2, 2026
Last update on Feb 2, 2026
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.
Central Government Grants Income Tax Exemption for Core Settlement Gurantee Fund
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.

About Author

Vanshika verma

Content Writer

Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.
Studycafe
Delhi, Delhi, India
1541
Up Next

Loading suggestions…