The Banking Laws (Amendment) Bill 2024 enhances governance by revising key banking laws. It updates "substantial interest" to ₹2 crore, extends cooperative bank directors' tenure, allows multiple nominees, and grants banks control over auditor remuneration. It also improves coordination between Central and State Cooperative Banks for better financial management.
Copyright infringement not intended
Parliament passed the Banking Laws (Amendment) Bill 2024 to improve governance standards in the Banking System.
The bill amends the provisions of:
The Bill modifies the definition of fortnight to the period from: first day to fifteenth day of each month, or sixteenth day to the last day of each month.
The bill allows account holders to nominate up to four individuals as nominees for their bank accounts -> to simplify inheritance and succession processes.
The government increased the threshold for "substantial interest" from Rs 5 lakh to Rs 2 crore -> To reflect the economic growth over the past six decades and ensure that regulations remain relevant.
The bill extends the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years -> This aligns with the Constitution (Ninety-Seventh Amendment) Act, 2011.
Banks now have the authority to decide the remuneration for statutory auditors -> Enhancing flexibility in governance.
The amendment permits directors of Central Cooperative Banks to serve on the boards of State Cooperative Banks -> Promoting better coordination.
Must Read Articles:
Source:
|
PRACTICE QUESTION Q. Critically Analyze the dual control of the Reserve Bank of India (RBI) and the government over public sector banks. 150 words |
© 2025 iasgyan. All right reserved
