Banking Laws (Amendment) Bill, 2024

In March 2025, the Banking Laws (Amendment) Bill, 2024 was passed in the Rajya Sabha to strengthen banking governance. It was earlier passed in the Lok Sabha in December 2024. It amends key legislations, including:

  • RBI Act, 1934
  • Banking Regulation Act, 1949
  • SBI Act, 1955
  • Banking Companies Acts (1970 & 1980)

Key Provisions

  • Redefines "fortnight" for cash reserve calculations.
  • Increases the substantial interest threshold from Rs. 5 lakh to Rs. 2 crore.
  • Transfers unclaimed financial assets to the Investor Education & Protection Fund (IEPF).
  • Allows banks to decide auditor remuneration independently.

Challenges in Banking Governance

  • Rs. 21,367 crore in banking frauds (2023-24, RBI Report).
  • Dual control over PSBs ....
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