The Banking Laws (Amendment) Bill, 2024, aims to modernize India’s banking sector. What major changes does it propose, and how will they affect banking operations?
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
The Banking Laws (Amendment) Bill, 2024, recently passed by the Indian Parliament, introduces significant reforms aimed at modernizing the country’s banking sector. Key changes include allowing account holders to appoint up to four nominees, simplifying the distribution of funds upon the account holder’s demise and enhancing depositor protection. The bill also redefines ‘substantial interest’ by raising the threshold from ₹5 lakh to ₹2 crore, impacting eligibility criteria for bank directorships and promoting better governance. Additionally, it extends the tenure of directors in cooperative banks, aiming to improve leadership stability in these institutions. Furthermore, the legislation grants banks greater autonomy in determining auditor remuneration and streamlines regulatory compliance processes, thereby enhancing operational efficiency. Collectively, these amendments are designed to strengthen governance, protect depositors, and align India’s banking practices with contemporary financial standards.
Stay updated with C4S Courses.