Banking Regulation Act, 1949 · Section guide
Section 25: Assets in India
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 25 — Assets in India. Requires the prescribed proportion of assets to be maintained in India and drives quarterly measurement/return mechanics; from 15. December 2025 the reference point is the last day of each quarter rather than the legacy last-Friday wording.
Official statute linkedProvision-specific anatomyPractical case + evidence file2025 amendment mapped
Effective-date control — 15 December 2025. Quarter reference moved from last Friday to last day. For an event that straddles this date, the working paper should show the pre/post amendment position rather than treating the current wording as historically universal.
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Requires the prescribed proportion of assets to be maintained in India and drives quarterly measurement/return mechanics.
Condition / limitation
from 15 December 2025 the reference point is the last day of each quarter rather than the legacy last-Friday wording.
Source and effective-date control
Apply the wording of Section 25 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.
Professional application
State the required domestic-asset proportion and calculation base, eligible assets and measurement/reporting points.
Evidence / working-paper checklist
- Section 25 evidence: general-ledger / treasury reconciliation.
- Section 25 evidence: return or financial statement submitted to RBI/Registrar.
- Section 25 evidence: auditor sign-off or working papers where relevant.
- Section 25 evidence: filing acknowledgement and calculation of the statutory reference date.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 25, avoid using a legacy Friday/fortnight reference after the statutory date changed.
- For Section 25, avoid submitting a return without a ledger reconciliation.
- For Section 25, avoid assuming an extension exists without a written statutory/RBI basis.
Linked Rules, RBI directions, notifications and forms
Linked instruments keep their own legal basis; they are not attributed to Section 25 unless the official instrument says so.
Related sections inside the Act
Use these links to read Section 25 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: read Section 25 in the DFS/India Code text together with the mapped 2025 amending Act and commencement date.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 25 on the event date.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.