Key Changes to Indian Banking Rules for NRIs in UAE from August 1

Aug 1, 2026

80 min

Aug 1, 2026 06:31

Indian banking rules to change from August 1: What NRIs in UAE must know

## Overview of New Banking Rules

Starting August 1, 2025, new regulations under the Banking Laws (Amendment) Act, 2025, will be implemented in India. These changes will impact Indian banks, including the State Bank of India (SBI) and other nationalised and co-operative banks.

## Key Changes

### Increased Capital Requirements

Banks in India are now required to maintain a minimum capital of ₹2 crore, a significant increase from the previous ₹5 lakh. This aims to enhance the financial stability of banks, particularly smaller co-operative banks.

### Handling of Unclaimed Funds

Unclaimed dividends, matured fixed deposits, and unredeemed shares that have been inactive for seven years will be transferred to the Investor Education and Protection Fund (IEPF). Although these funds can still be claimed, the process will now involve the IEPF rather than the banks directly.

### Audit Reforms

Audit procedures for public sector banks like SBI will align with those of private companies, promoting better oversight and transparency.

## Implications for NRIs in UAE

Indian expatriates in the UAE with dormant accounts or investments in India should be aware of these changes. Once funds are moved to the IEPF, a different claim process is required. Additionally, the increased capital requirements and improved audit standards may enhance the safety and reliability of investments in Indian banks.

## Recommendations

NRIs should review any old accounts or unclaimed investments in India and ensure their bank records are updated. It's advisable to claim any inactive funds before they are transferred to the IEPF. Checking bank websites for unclaimed dividends or deposits could be beneficial before the changes take effect.

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