Lok Sabha The Banking Act (Amendment), 2024 has been introduced in the Lok Sabha. Finance Minister Nirmala Sitharaman introduced this bill in the Lok Sabha on Friday. If this bill is passed, then bank account holders will be able to register the names of 4 nominees in their account. Currently, there is a provision for only one nominee in an account. Many changes have been talked about in this proposed bill. For example, the substantial interest of the directors of the company has been redefined. In this, the existing limit of Rs 5 lakh can be increased to Rs 2 crore.
4 nominees can be registered
This proposed bill will affect many other acts including the Reserve Bank of India Act, Banking Regulation Act and State Bank of India Act. The main proposal in the bill is to increase the number of nominees in a bank account. It is proposed to increase it from the current 1 to 4. This will give a lot of flexibility and choice to the account holders.
Protecting the interests of investors
The bill also aims to transfer unclaimed dividends, shares and bond payments to the Investor Education and Protection Fund (IEPF). This change will allow people to claim these funds or get a refund, which will help protect the interests of investors.
Tenure of directors in cooperative banks will increase
The proposed bill aims to enhance governance standards, ensure uniform reporting by banks to the Reserve Bank of India, enhance protection for depositors and investors, improve audit quality in public sector banks, streamline customer convenience with regard to nominations and increase the tenure of directors in co-operative banks.
Opposition to the opposition
This bill has also been opposed by some opposition members in the Lok Sabha. Congress’s Manish Tiwari said that the states have the right to amend the laws related to cooperative societies and cooperative banks. He said that there is a contradiction on whether the Center can control cooperative societies or not.
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