Banking Laws (Amendment) Bill 2024: Key Changes Introduced in Lok Sabha

Pankaj Chaudhary launched the Banking Laws (Amendment) Bill, 2024.

Banking Laws (Amendment) Bill 2024: During the Parliament session Finance Minister of State, Pankaj Chaudhary launched the Banking Laws (Amendment) Bill, 2024, in the Lok Sabha, on Friday, aiming to change key banking regulations.

The Reserve Bank of India Act, the Banking Regulation Act, the State Bank of India Act, and many more will be affected by the amendments which are proposed by the Finance Minister.

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The proposed changes will cover amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

Banking Laws Bill 2024 key changes

• Changes provide an option to increase the number of nominees per bank, instead of just one. This is just one of the changes being made.
• Changes related to redefining 'substantial interest' for directorships, a proposal to increase the threshold from ₹5 lakh, which was set nearly 60 years ago, to ₹2 crore.
• The bill aims to allow banks more flexibility to decide the remuneration and how much to pay statutory auditors.
• It also suggests changing the regulatory reporting dates for banks to the 15th and last day of each month instead of the current second and fourth Fridays.
• Last Friday, the Union Cabinet approved, the Bill sets several laws which includes, which the Reserve Bank of India Act, 1934, 1949, the State Bank of India Act, 1955, the Banking Regulation Act, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

"There is no attempt to undermine the cooperatives, particularly cooperatives dealing with everything other than banks. Banks, cooperatives with a licence for banking will have to have a rule and therefore we have shown this," Sitharaman said.

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In her Budget speech, the Finance Minister came up with the amendments to the Banking Regulation Act.

"To improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act are proposed," she had said.

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