India’s banking rules changed from August 1, 2025, affecting UAE NRIs with Indian accounts and investments. India’s Ministry of Finance confirmed reforms under the Banking Laws Amendment Act, 2025, covering bank capital, unclaimed funds, and audits. The rules cover SBI, nationalized banks, and cooperative banks across India, strengthening oversight and protecting old financial assets.
The biggest concern for UAE NRIs involves old deposits, dividends, and shares that remain untouched for years. Banks must maintain Rs. 2 crore as minimum capital, compared with Rs. 5 lakh earlier under existing requirements. The change aims to strengthen banks and support greater stability across smaller cooperative institutions.
Unclaimed dividends, matured fixed deposits, and unredeemed shares can move to the Investor Education and Protection Fund after seven years. After that transfer, eligible claimants must recover funds through the IEPF process instead of the bank directly.
The reforms also change audit arrangements for SBI and other public sector banks from August 1. New appointment rules will align more closely with company law, supporting stronger oversight and greater transparency.
For UAE NRIs, these changes make old Indian financial records worth checking before funds reach seven years. Bank customers should review dormant accounts, forgotten deposits, dividends, and shares linked to India.
NRIs should keep contact details and residency information updated with the relevant Indian bank. These steps can also reduce problems during future claims or account services.
The reforms do not create a broad overhaul of NRI accounts, but tighten oversight and unclaimed fund handling. A timely review can help UAE NRIs avoid separate recovery steps through the IEPF.
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