S.O.: 4343(E) dated August 6, 2026
Applicable Act/Rule: Banking Regulation Act, 1949 (10 of 1949)
Applicable Section/Rule: Section 53(1) & Section 15(1)
The Ministry of Finance (Department of Financial Services) has issued this notification on the recommendation of the Reserve Bank of India. The notification relates to the applicability of section 15(1) of the Banking Regulation Act, 1949, in connection with the treatment of unamortized expenditure arising from income recognition under the “Effective Interest Rate” method as specified in the Reserve Bank of India (Commercial Banks — Asset Classification, Provisioning and Income Recognition) Directions, 2026, issued vide circular number RBI/DOR/2026-27/398, dated April 27, 2026.
“S.O. 4343(E).— In exercise of the powers conferred by sub-section (1) of section 53 of the Banking Regulation Act, 1949 (10 of 1949), the Central Government, on the recommendation of the Reserve Bank of India, hereby declares that the provisions of sub-section (1) of section 15 of the said Act shall not apply to a banking company in so far as it relates to the treatment of unamortized expenditure on account of recognition of income under the ‘Effective Interest Rate’ method as specified in the Reserve Bank of India (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026, issued vide circular number, RBI/DOR/2026-27/398, dated the 27th April, 2026.”
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