Banking Laws (Amendment) Bill 2024 Passed by Lok Sabha
Why in the news
Lok Sabha approved changes to several banking laws aimed at better governance, depositor safety and audit quality.
Key facts
| Item | Earlier | Now |
|---|---|---|
| Nominees on deposits and safe custody | Fewer | Up to 4, simultaneous or successive |
| Return to RBI | Each Friday | End of fortnight, month or quarter |
| Substantial interest | ₹5 lakh | ₹2 crore |
| Co-op bank director tenure | 8 years | 10 years (not chairperson or full-time directors) |
- Unclaimed dividends, shares and bond payouts go to the IEPF; owners may claim them back.
- Tenure change aligns with the 97th Constitutional Amendment Act, 2011; changes apply to cooperative banks doing banking.
Next step
- Assent by the President makes it law.
Exam angle
- Nominees: four; unclaimed money: IEPF; threshold: ₹2 crore.