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Banking Laws (Amendment) Bill, 2024
December 9 , 2024
17 days
146
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- The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024.
- The Bill allows the bank account holders to have up to four nominees in their accounts.
- It also proposes some changes related to redefining “substantial interest” for directorships, which could increase to ₹2 crore instead of the current limit of ₹5 lakh.
- It proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from eight years to 10 years.
- The Bill would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank.
- The Bill also seeks to give greater freedom to banks in deciding the remuneration to be paid to statutory auditors.
- It redefines the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays.
- The Bill proposed to amend five Acts –
- The Reserve Bank of India Act, 1934,
- The Banking Regulation Act, 1949 (or the BR Act),
- The State Bank of India Act, 1955,
- The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and
- The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
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