Banking Laws (Amendment) Bill, 2024

On December 3, 2024, the Lok Sabha passed the Banking Laws (Amendment) Bill, 2024, following the end of the week-long parliamentary deadlock.

Key Points

Nomination Changes: Account holders can nominate up to four nominees for their bank accounts. Locker holders will have the option of successive nominations only.
Director Tenure and Remuneration: The Bill extends the tenure of directors in cooperative banks from eight to 10 years, aligning with the 97th Constitutional Amendment of 2011.
It also grants greater autonomy to banks in determining the remuneration of statutory auditors.
Substantial Interest Redefinition: The amendment proposes to redefine "substantial interest" for directorship eligibility, increasing the threshold from ₹5 lakh to ₹2 crore.
Reporting Dates: Regulatory compliance dates for banks will be revised to the 15th and last day of each month, replacing the previous second and fourth Fridays.