The Banking Laws(Amendment) Bill, 2024

The Banking Laws (Amendment) Bill, 2024, introduced in the Lok Sabha, aims to modernize banking governance and enhance depositor and investor protections. Here's a quick summary of the proposed changes:

1️⃣ Enhanced Governance:

Increased director tenure in cooperative banks from 8 to 10 years.

Allowed directors from central cooperative banks to serve on state cooperative bank boards.

2️⃣ Improved Transparency:

Revised reporting timelines for banks to align with the last day of fortnights, months, or quarters.

3️⃣ Customer Convenience:

Permits up to 4 nominees for deposits, safety lockers, and articles in custody, with provisions for simultaneous and successive nominations.

4️⃣ Modernized Regulations:

Redefined "substantial interest" with updated thresholds to reflect present values.

Aligned laws with the Companies Act, 2013, for audit practices and unclaimed dividend handling.

5️⃣ Investor Protection:

Mandated transfer of unclaimed dividends, shares, and bond amounts to the Investor Education and Protection Fund, ensuring accessibility for rightful claimants.

This Bill represents a significant step towards ensuring accountability, transparency, and enhanced consumer services in the banking sector.