Top News

New Delhi: The Lok Sabha on Tuesday passed the Banking Laws (Amendment) Bill, 2024, which would allow bank accounts to have up to four nominees among other changes. The move is aimed at ensuring that successors of an account holder or someone with a fixed deposit are not locked out as is often the case.The new Bill allows depositors to opt for either simultaneous nomination, where nominees are assigned specific percentage shares, or successive nomination, where nominees inherit in a predefined order.The Bill presented by Finance Minister Nirmala Sitharaman was approved by a voice vote.She also said that since 2014, the Government and the RBI have been extremely cautious, so that banks remain stable."The intention is to keep our banks safe, stable, healthy, and after 10 years you are seeing the outcome," Sitharaman said.The proposed bill also aims to extend the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, aligning with the Constitution (Ninety-Seventh Amendment) Act, 2011.If enacted, the bill will enable directors of Central Cooperative Banks to serve on the boards of State Cooperative Banks.Additionally, it seeks to provide banks with greater autonomy in determining the remuneration for statutory auditors.The bill also proposes to revise the reporting dates for regulatory compliance, shifting them to the 15th and last day of each month instead of the current schedule of the second and fourth Fridays."The proposed amendments will strengthen governance in the banking sector and enhance customer convenience with respect to nomination and protection of investors," Sitharaman said while moving the bill for consideration and passing.(With inputs from PTI)