Government Set to Introduce Revolutionary Banking Laws (Amendment) Bill, 2024

The Indian government is poised to introduce the Banking Laws (Amendment) Bill, 2024, including changes such as increasing the number of nominee options per bank account to four and redefining 'substantial interest' for directorships. The Bill aims to amend several key banking regulations.

The Indian government is set to introduce the Banking Laws (Amendment) Bill, 2024, which aims to significantly reform the banking sector. Notable changes include increasing the number of nominee options per bank account to four, up from the current one.

The Bill also seeks to redefine 'substantial interest' for directorships, raising it to Rs 2 crore from Rs 5 lakh, a limit established almost six decades ago. This change could modernize criteria that have long been outdated.

Additionally, the Bill introduces greater autonomy for banks in deciding auditor remuneration and updates regulatory compliance reporting dates to the 15th and last day of each month. The legislation was endorsed by the Union Cabinet and proposes amendments to several major banking acts.

(With inputs from agencies.)