The Banking Laws (Amendment) Bill, 2024 is a bill which aims to improve the banking sector in India by modernizing and streamlining banking operations. The bill was introduced in the Lok Sabha by Union Minister of State for Finance, Pankaj Choudhary.
The bill seeks to amend several banking laws, including:
- The Reserve Bank of India Act, 1934
- The Banking Regulation Act, 1949
- The State Bank of India Act, 1955
- The Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980
Some of the proposed changes include:
- Privatization: The bill will allow for the privatization of two public sector banks (PSBs). The minimum government holding in the PSBs is expected to be lowered from 51% to 26%.
- Directorship tenure: The bill will change the tenure of directors of co-operative banks.
- Unclaimed amounts: The bill will expand provisions for the settlement of unclaimed amounts.
- Governance standards: The bill seeks to improve governance standards.
- Reporting: The bill seeks to provide consistency in reporting by banks to the Reserve Bank of India.
- Depositor and investor protection: The bill seeks to ensure better protection for depositors and investors.
- Audit quality: The bill seeks to improve audit quality in public sector banks.
- Nominees: The bill seeks to raise the number of nominees per account.
- Directorship interest: The bill seeks to redefine “substantial interest” for directorships, which could increase to Rs 2 crore.
