The Department of Financial Services vide notification dated 9th May, 2022 has declared that the provisions of sub-section (1) of section 15 of the Banking Regulation Act, 1949 shall not apply to a banking company for a period up to 31st March, 2026, in so far as it relates to the treatment of unamortised expenditure on account of enhancement in family pension.
Section (1) of section 15 of the Banking Regulation Act, 1949 provides that no banking company shall pay any dividend on its shares until all its capitalized expenses (including preliminary expenses, organization expenses, share-selling commission, brokerage, amounts of losses incurred and any other item of expenditure not represented by tangible assets) have been completely written off.
