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The Banking Law Amendment Bill 2024 has been passed in the Lok Sabha. Through this bill, a total of 19 amendments are proposed in the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955, and. After the passage of this bill, now the account holder will be able to make four nominees instead of one in the bank account. The amount of dividend, shares, interest, and matured bonds not claimed for 7 years can be transferred to the Investor Education and Protection Fund i.e. IEPF. With this, investors will be able to claim their money through IEPF. The amendments proposed in the Banking Amendment Bill 2024 will not only improve the functioning of banks but will also protect the interests of investors and account holders.

After the Banking Amendment Bill is passed, now the account holder will have two options to give the share to the nominee of the bank account. One, he will be able to give the fixed share to all the nominees together. Second, keeping the nominees in a sequence, so that one will get the money after the other. This change is being made to send the unclaimed amount to the right heir. As of March 2024, there is an amount of about Rs 78,000 crore in the banks, on which no claim has been made.

Important changes regarding the directors of government banks

After the passage of the Banking Amendment Bill, the way has been cleared for the directors of the Central Co-operative Bank to work in the State Co-operative Bank as well. The tenure of the directors of co-operative banks will be increased from the current 8 years to 10 years. However, this rule will not apply to the chairman and full-time directors. In the Banking Amendment Bill, government banks will get the right to fix the fees of auditors and hire top-level talent. This will improve the audit quality of the bank.

Change in the time limit for submitting the report
Under the new law of the Banking Amendment Bill 2024, banks will be allowed to change the time limit for submitting the report to the Reserve Bank of India. Now this report can be given at the end of 15 days, one month and quarter. Earlier, banks had to report to RBI every Friday.