Regulatory Alerts2023-12-29
Banking (Significant Interest Fees) Regulations 2023
Issued by the Minister under the Banking Act, these regulations require any person acquiring a significant interest in a financial institution to pay a prescribed fee to the central bank. The central bank will not process the acquisition proposal until the applicable fee is paid, with amounts specified in a tiered schedule ranging from Rs 100,000 for money-changers to Rs 1,000,000 for banks. This framework standardizes cost requirements across all regulated financial entities, including foreign exchange dealers and non-bank deposit-taking institutions.
Name/Imac01/Govt Notices/2023/XXXXX - xx.xx.2023 - 1st Proof 1038 Government Notices 2023 By Authority: Government Printing Department, La Tour Koenig 112/12/2023 – 952 Government Notice No. 185 of 2023 THE BANKING ACT Regulations made by the Minister under section 101(2)(a) of the Banking Act
- These regulations may be cited as the Banking (Significant Interest Fees) Regulations 2023.
- In these regulations – “Act” means the Banking Act; “applicable fee” means the applicable fee specified in the Schedule.
- Any person proposing to acquire significant interest in a financial institution under section 31 of the Act shall pay the applicable fee to the central bank.
- The central bank shall not process the proposal under regulation 3 unless the applicable fee is paid. Made by the Minister on 21 December 2023. SCHEDULE [Regulation 2] APPLICABLE FEES Financial institution Fee (Rs)
- Bank 1,000,000
- Non-bank deposit taking institution 500,000
- Foreign exchange dealer 200,000
- Money-changer 100,000