The Banking Amendment Bill 2024 has been passed in the Lok Sabha on Tuesday (December 3). Many important changes will be made under this Banking Amendment Bill. Will amend the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955 and other laws.
Finance Minister Nirmala Sitharaman had introduced this bill in the Lok Sabha. A total of 19 amendments are proposed in this bill. The bill has been passed by the government in the Lok Sabha in the current winter session of the Parliament.
After the implementation of the new law, you will now be able to add 4 nominees for one bank account.
After the implementation of the new law, account holders will now be able to add 4 nominees for one bank account. This change is being made to ensure that the unclaimed amount reaches the rightful heir. Till March 2024, there is an amount of about Rs 78,000 crore in banks, on which no claim has been made.
The government is making amendments in the State Bank of India Act and the Banking Companies Acquisition Act. With this amendment, the amount of unclaimed dividend, shares, interest and mature bonds for 7 years can be transferred to the Investor Education and Protection Fund i.e. IEPF. With this, investors will be able to claim their money through IEPF.
Finance Minister Nirmala Sitharaman introduced the Banking Amendment Bill 2024 in the Lok Sabha. A total of 19 amendments are proposed in this bill.
Directors of Central Co-operative Bank will now be able to work in State Co-operative Bank also.
Directors of Central Co-operative Bank will now be able to work in State Co-operative Bank also. 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. Co-operative banks are established to provide facilities in rural and agricultural areas. Now all the co-operative banks come under RBI.
Public sector banks will get the right to decide 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 deadline for reporting to RBI
Under the new law of Banking Amendment Bill 2024, banks will be allowed to change the deadline 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 proposed amendments 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.
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