Wed Dec 04 06:49:18 UTC 2024: ## Lok Sabha Passes Banking Amendment Bill, Allowing for Multiple Nominees and Other Changes

**New Delhi, December 3, 2024** – The Lok Sabha today passed the Banking Amendment Bill 2024, introducing significant changes to banking regulations in India. The bill, introduced by Finance Minister Nirmala Sitharaman, amends the Reserve Bank of India Act 1934, the Banking Regulation Act 1949, the State Bank of India Act 1955, and other related laws. A total of 19 amendments were proposed.

A key change allows account holders to designate up to four nominees for a single bank account, aiming to facilitate the transfer of unclaimed funds. Currently, approximately ₹78,000 crore in unclaimed funds are held by banks as of March 2024.

The bill also streamlines the transfer of unclaimed dividends, shares, interest, and matured bonds to the Investor Education and Protection Fund (IEPF) after seven years. This will allow investors to claim their funds through the IEPF.

Further amendments include:

* **Cooperative Bank Directors:** Directors of central cooperative banks can now also serve on state cooperative banks. The maximum tenure for directors (excluding chairmen and whole-time directors) in cooperative banks is increased from eight to ten years.
* **Government Bank Authority:** Public sector banks will gain more autonomy in setting auditor fees and hiring top-level talent, aiming to improve audit quality.
* **Reporting Flexibility:** Banks will have more flexibility in reporting deadlines to the Reserve Bank of India (RBI), with options for submitting reports every 15 days, monthly, or quarterly, instead of the previous weekly requirement.

The government asserts that these amendments will improve banking operations while protecting the interests of investors and account holders.

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