Revolutionizing Indian Banking: New Laws for Stability and Convenience

The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024, enhancing nominee limit, redefining 'substantial interest,' and increasing director tenures in cooperative banks. It aims to bolster governance, customer convenience, and bank stability, granting banks more flexibility in auditor remuneration and updating compliance reporting dates.

The Lok Sabha has given its nod to the Banking Laws (Amendment) Bill, 2024, a move set to transform the convenience and security of Indian bank account holders.

The legislation, championed by Finance Minister Nirmala Sitharaman, introduces vital provisions such as raising the number of permissible nominees in bank accounts and redefining 'substantial interest' for director eligibility. This aims to align financial governance with contemporary monetary realities by adjusting limits unchanged for almost sixty years.

In her address, Sitharaman emphasized the government's commitment to keeping banks stable and customer-centric. The bill also extends director tenures in cooperative banks, offers banks autonomy in auditor remuneration, and modifies board service eligibility between State and Central Cooperative Banks, alongside updated compliance reporting deadlines.

(With inputs from agencies.)