What’s changing from August 1?

  1. Higher minimum capital for banks: Banks in India must now maintain ₹2 crore as minimum capital — up from just ₹5 lakh earlier. This is expected to improve financial strength, especially in smaller co-operative banks used by many in rural areas.

  2. Unclaimed dividends and matured deposits to go to IEPF: If you have unclaimed dividends, matured fixed deposits, or unredeemed shares sitting idle in your Indian bank account for 7 years, the money will now be moved to the Investor Education and Protection Fund (IEPF) — a central government fund. You can still claim your money from the IEPF, but not directly from the bank anymore. This helps prevent misuse or misplacement of long-forgotten funds.

  3. Audit rules now in line with company law: Auditors of SBI and other public sector banks will now be appointed using the same rules as private companies, ensuring better oversight and transparency.

Why this matters to Indian expats in UAE

If you’ve left behind small savings, dividends, or shares in Indian banks that haven’t been touched in years — this update could impact you. Once that money is moved to the IEPF, you'll need to follow a separate claim process to retrieve it.

Likewise, if you're investing in Indian banks, the higher capital requirements and tighter audits may make them safer and more reliable, especially for long-term fixed deposits or NRE/NRO accounts.

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.