The Lok Sabha on December 3, 2024 passed the Banking Laws (Amendment) Bill, 2024.
Key provisions
It allows bank account holders to have up to four nominees in their accounts.
Another proposed change relates to redefining ‘substantial interest’ for directorships, which could increase to ₹2 crore instead of the current limit of ₹5 lakh, which was fixed almost six decades ago.
Depositors will have the option of successive or simultaneous nomination facility, while locker holders will have only successive nomination.
it proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011.
It allows a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank.
The bill seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays.
