The Banking Amendment Bill 2024 has been passed in the Lok Sabha on Tuesday (3 December). Many important changes will be made under this Banking Amendment Bill. Amendments will be made in the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955 and other laws. Finance Minister Nirmala Sitharaman introduced this bill in the Lok Sabha. A total of 19 amendments are proposed in this bill. The government has passed the bill in the Lok Sabha in the current winter session of Parliament. After the implementation of the new law, now 4 nominees can be added for a bank account After the implementation of the new law, account holders will now be able to add 4 nominees for a bank account. This change is being made to transfer the unclaimed amount to the rightful heir. As of March 2024, there is an amount of about Rs 78,000 crore in the banks, on which no claim has been made. The government is amending the State Bank of India Act and the Acquisition of Banking Companies Act. With this amendment, the amount of dividend, shares, interest and matured bonds not claimed for 7 years can be transferred to Investor Education and Protection Fund i.e. IEPF. With this, investors will be able to claim their money through IEPF. Directors of Central Co-operative Bank will now be able to work in State Co-operative Bank as well Directors of Central Co-operative Bank will now be able to work in State Co-operative Bank as well. The tenure of directors of co-operative banks will be increased from the current 8 years to 10 years. However, this rule will not apply to chairman and whole-time directors. Cooperative banks are established to provide facilities in rural and agricultural areas. Now all cooperative banks come under RBI. Government banks will get the right to fix the fees of auditors and hire top level talent. This will improve the audit quality of the bank. Banks will be allowed to change the time limit for reporting to RBI Under the new law of Banking Amendment Bill 2024, banks will be allowed to change the time limit for reporting to RBI. Now this report can be given at the end of 15 days, one month and quarter. Earlier, banks had to submit reports to RBI every Friday. The amendments proposed in the Banking Amendment Bill 2024 will not only improve the functioning of banks but will also protect the interests of investors and account holders.
