Wed Dec 04 12:12:51 UTC 2024: ## Lok Sabha Passes Banking Laws Amendment Bill, Allowing Up to Four Nominees per Account
**New Delhi, India** – The Lok Sabha has passed the Banking Laws Amendment Bill, 2024, introducing significant changes to banking regulations in India. Finance Minister Nirmala Sitharaman presented the bill, highlighting its 19 amendments aimed at improving customer convenience and streamlining the banking system.
A key change allows account holders to designate up to four nominees for their bank accounts and fixed deposits (FDs), up from the previous limit of one. This move is intended to facilitate the transfer of unclaimed funds, estimated at ₹78,000 crore (approximately $9.4 billion USD) as of March 2024, according to Reserve Bank of India data. Nominees can be assigned a specific share of the funds or designated in a sequential order of inheritance.
The bill also permits directors of central cooperative banks to serve on state cooperative banks. The tenure of directors in cooperative banks has been increased from eight to ten years, excluding chairpersons and whole-time directors. Furthermore, the bill empowers public sector banks to determine auditor fees and hire top-tier talent.
Reporting deadlines for banks to the RBI have been revised, allowing for flexibility in submitting reports at 15-day, monthly, and quarterly intervals instead of the current weekly requirement.
Finally, the bill mandates the transfer of unclaimed dividends, shares, interest, and matured bonds after seven years of inactivity to the Investor Education and Protection Fund. The changes are expected to improve the efficiency of the banking system and ease access to funds for beneficiaries.
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