Wed Dec 04 01:50:57 UTC 2024: ## Lok Sabha Passes Banking Laws Amendment Bill Amidst Opposition Criticism
**New Delhi, [Date of Publication]** – The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024 on Tuesday, enacting 19 amendments designed to bolster banking governance and enhance investor protection. The bill, introduced by Finance Minister Nirmala Sitharaman on August 9th, modifies several key banking acts, including the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949.
The amendments aim to improve governance standards, standardize reporting procedures, strengthen depositor and investor protections, and enhance auditing processes within public sector banks. Specific changes include extending the tenure of non-whole-time directors in cooperative banks from eight to ten years, raising the threshold for “substantial interest” in a bank from ₹5 lakh to ₹2 crore, and allowing public sector banks greater flexibility in auditor remuneration. The reporting schedule for banks submitting statutory reports to the RBI has also been revised.
The bill also proposes allowing four nominees to represent depositors’ interests.
While the government touted the bill as a step towards improved banking sector stability, it faced strong opposition criticism. Congress MP Karti Chidambaram criticized the bill as lacking the “majestic reforms” promised in the government’s 100-day agenda. The debate highlights ongoing disagreements over the pace and nature of banking sector reforms in India.
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