Good Information For Saving Account Holders; Quickly, You Can Add 4 Nominees – Particulars
Banking Legal guidelines (Modification) Invoice, 2024: The Lok Sabha on Tuesday handed the Banking Legal guidelines (Modification) Invoice, 2024, which permits checking account holders to have as much as 4 nominees of their accounts.
One other proposed change pertains to redefining ‘substantial curiosity’ for directorships, which may enhance to Rs 2 crore as a substitute of the present restrict of Rs 5 lakh, which was mounted nearly six a long time in the past.
The Invoice piloted by Finance Minister Nirmala Sitharaman was accredited by a voice vote. Replying to the controversy on the Invoice, Sitharaman mentioned depositors may have the choice of successive or simultaneous nomination facility, whereas locker holders may have solely successive nominations.
She additionally mentioned that since 2014, the Authorities and the RBI have been extraordinarily cautious, in order that banks stay steady. “The intention is to maintain our banks secure, steady, wholesome, and after 10 years you might be seeing the end result,” Sitharaman mentioned.
The invoice proposes to extend the tenure of administrators (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, in order to align with the Structure (Ninety-Seventh Modification) Act, 2011.
As soon as handed, the invoice would enable a director of a Central Cooperative Financial institution to serve on the board of a State Cooperative Financial institution. The invoice additionally seeks to present higher freedom to banks in deciding the remuneration to be paid to statutory auditors. It additionally seeks to redefine the reporting dates for banks for regulatory compliance to the fifteenth and final day of each month as a substitute of the second and fourth Fridays.
“The proposed amendments will strengthen governance within the banking sector and improve buyer comfort with respect to nomination and safety of buyers,” Sitharaman mentioned whereas shifting the invoice for consideration and passing.
