Tue Dec 03 16:10:01 UTC 2024: ## Lok Sabha Passes Bill Allowing Up to Four Nominees for Bank Accounts
**New Delhi, December 3, 2024** – The Lok Sabha today passed the Banking Laws (Amendment) Bill, 2024, significantly increasing the number of nominees allowed on bank accounts. The bill, piloted by Finance Minister Nirmala Sitharaman and passed by voice vote, allows account holders to designate up to four nominees, a considerable increase from the previous limit.
The amendments also include a revised definition of “substantial interest” for directorships, raising the threshold from ₹5 lakh to ₹2 crore. This adjustment, according to the Finance Minister, reflects the economic changes of the past six decades. Further changes extend the tenure of directors in cooperative banks from eight to ten years, aligning with the Constitution (Ninety-Seventh Amendment) Act, 2011, and allow directors of Central Cooperative Banks to serve on State Cooperative Bank boards.
The bill also grants banks greater autonomy in determining auditor remuneration and standardizes reporting dates for regulatory compliance. These changes, Minister Sitharaman stated, aim to strengthen governance within the banking sector, enhance customer convenience, and bolster investor protection. She highlighted the government’s and Reserve Bank of India’s focus on maintaining stable and secure banking since 2014, citing the bill’s passage as evidence of their success. While account holders can now name up to four simultaneous nominees, locker holders will be limited to successive nominations.
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