Union Finance Minister Nirmala Sitharaman introduced the Banking Laws (Amendment) Bill, 2024 in the Lok Sabha during the Parliament session on Friday.
Banking Laws Bill 2024: Important Changes
1) The bill aims to increase the option for nominees per bank account to four from the existing one, among others.
2) Another amendment involves redefining ‘substantial interest’ for directorships, potentially raising the threshold from the current ₹5 lakh, set nearly 60 years ago, to ₹2 crore.
3) In addition, the Bill aims to give banks more flexibility in determining the pay for statutory auditors.
4) It also proposes changing the regulatory reporting dates for banks to the 15th and last day of each month, replacing the current second and fourth Fridays.
5) Approved by the Union Cabinet last Friday, the Bill seeks to amend several laws, including the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
