Finance Minister Nirmala Sitharaman is going to introduce the Banking Laws (Amendment) Bill, 2024 in the Lok Sabha today. To improve banking services, many important amendments will be proposed in this bill along with increasing the number of nominees.
Bank Nominees Rules: The government is constantly making efforts to improve the banking law. Under this, Finance Minister Nirmala Sitharaman is going to introduce the Banking Laws (Amendment) Bill, 2024 in the Lok Sabha today. This bill was approved by the Union Cabinet last Friday. Through this bill, the government will propose amendments in many acts of the banking sector.
Proposal to increase the number of nominees from 1 to 4
In the Banking Laws (Amendment) Bill, 2024 in the Lok Sabha, it has been proposed to increase the number of nominees from 1 to 4, that is, if this bill is passed, then in the coming time, bank account holders will be able to make up to 4 nominees in their account instead of one. According to the revised list of business of the Lok Sabha, Finance Minister Nirmala Sitharaman is going to introduce the Banking Laws (Amendment) Bill, 2024 on Friday.
These proposals for amendment are also included
Last Friday, the Union Cabinet had approved the proposal to amend the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
According to sources, some changes are proposed to be made in the Banking Laws (Amendment) Bill, 2024 regarding these cooperative banks as well. Apart from this, the bill provides for giving more independence to banks in deciding the remuneration to be paid to statutory auditors. This bill was announced by the Finance Minister in his 2023-24 budget speech. He had said, some amendments are proposed in the Banking Regulation Act, Banking Companies Act and Reserve Bank of India Act to improve bank administration and enhance investor protection.
Purpose of increasing the number of nominees
The purpose behind the proposal to increase the nominees in this bill is the unclaimed amount. As of March 2024, there are Rs 78,000 crore in the banks, which no one is claiming. The government believes that having more than one nominee can significantly reduce the problem of unclaimed money and this money will reach the right successor.
