New Banking System: The Banking Laws Amendment Bill 2024 has been passed in the Lok Sabha. Through this bill, a total of 19 amendments are proposed in the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955 and After the passing of this bill, now account holders will be able to make four nominees in the bank account instead of one. The amount of unclaimed dividends, shares, interest and matured bonds for 7 years can be transferred to the Investor Education and Protection Fund i.e. IEPF. With this, investors will be able to claim their money through IEPF. The proposed amendments in the Banking Amendment Bill 2024 will not only improve the functioning of banks but will also protect the interests of investors and account holders.
After the Banking Amendment Bill is passed, now the account holder will have two options to give the share of the bank account to the nominee. Firstly, he will be able to give the fixed share to all the nominees together. Second, to keep the nominees in a sequence so that one nominee after another gets the money. This change is being made so that the unclaimed amount reaches the rightful heir. Till March 2024, there is an amount of about Rs 78,000 crore in banks on which no claim has been made.
Important changes regarding directors of public sector banks
After the passage of the Banking Amendment Bill, the way has been cleared for the directors of the Central Cooperative Bank to work in the State Cooperative Bank also. The tenure of directors of cooperative banks will be increased from the current 8 years to 10 years. However, this rule will not apply to the chairman and whole-time directors. The Banking Amendment Bill will give power to public sector banks to fix auditor fees and appoint top level talent. This will improve the audit quality of the bank.
Change in time limit for submission of report
Under the new law of Banking Amendment Bill 2024, banks will be allowed to change the deadline for submitting reports to the Reserve Bank of India. Now this report can be given at the end of 15 days, one month and quarter. Earlier, banks had to submit reports to RBI every Friday.
