Banking Laws (Amendment) Bill 2024: New Horizons for Account Holders

The Banking Laws (Amendment) Bill, 2024, passed in Indian Parliament, allows up to four nominees per bank account, redefines 'substantial interest', and aims for stricter action against defaulters. It also increases cooperative bank directors' tenure and gives banks more freedom in auditor remuneration and regulatory compliance.

The Indian Parliament has approved the Banking Laws (Amendment) Bill, 2024, allowing bank account holders to nominate up to four individuals. The bill, which passed by voice vote in both houses, aims to redefine the term 'substantial interest' in a bank, raising the limit substantially.

Finance Minister Nirmala Sitharaman emphasized the government's commitment to holding wilful defaulters accountable, noting significant efforts by the Directorate of Enforcement. The Minister clarified that loan write-offs are not loan waivers and announced record profits for public sector banks.

The bill also extends cooperative bank directors' tenure from eight to ten years and updates statutory auditor payment guidelines. New regulatory compliance dates are set for the 15th and last day of each month, and simultaneous nomination policies are introduced for deposits and lockers.

(With inputs from agencies.)