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Source- This post on Banking Laws (Amendment) Bill, 2024 has been created based on the article “Bill providing up to 4 nominees for bank account tabled” published in “Indian Express” on 10 August 2024.
Why in News?
Recently, The Banking Laws (Amendment) Bill, 2024, was introduced in the Lok Sabha.
The Banking Laws (Amendment) Bill, 2024
Purpose: The Bill aims to enhance banking governance, improve reporting consistency to the Reserve Bank of India (RBI), and provide better protection for depositors and investors.
Objectives: It seeks to improve audit quality in Public Sector Banks and extend the tenure of directors (excluding the chairperson and whole-time director) in cooperative banks.
Key Provisions
i) Nominee Option: The Bill allows account holders to designate up to four nominees for their bank accounts and lockers.
ii) Simultaneous and Successive Nominations: It includes provisions for both simultaneous and successive nominations.
iii) Transfer to Investor Education and Protection Fund (IEPF): Unclaimed dividends, shares, interest, or redemption of bonds will be transferred to the IEPF. Individuals can claim these from the fund later.
iv) Amendments to Existing Laws: The Bill proposes amendments to several existing laws, including the RBI Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
UPSC Syllabus: Indian Economy
