Banking Laws (Amendment) Bill, 2024

The Banking Laws (Amendment) Bill, 2024 has been passed in the Lok Sabha, aiming to amend specific banking laws in India. This Bill seeks to address various aspects of banking operations, including the inclusion of nominees in bank accounts, resolution of unclaimed bank balances, and enhancing the governance framework of banks.

One of the key provisions of the Bill is the allowance for up to four nominees in bank accounts. This amendment aims to facilitate easier and more convenient management of bank accounts in cases of account holder's absence or incapacity. The inclusion of multiple nominees ensures that the funds in the account can be accessed by designated individuals in the absence of the account holder.

Furthermore, the Bill introduces provisions for the settlement of unclaimed bank balances. It proposes a mechanism to transfer unclaimed balances, which have remained inactive for a specific period, to the Senior Citizens' Welfare Fund and the National Housing Bank. This aims to utilize these funds for social welfare purposes, benefiting senior citizens and the housing sector.

The Bill also seeks to strengthen the governance framework of banks. It proposes amendments to enhance the powers and responsibilities of the Reserve Bank of India (RBI) in regulating banks. Additionally, it aims to improve the representation of women on bank boards, fostering greater diversity and inclusivity in the financial sector.

The Banking Laws (Amendment) Bill, 2024 has received mixed reactions from various stakeholders. While some welcome the proposed changes, others have expressed concerns regarding the potential impact on bank operations and customer convenience. The Bill is currently being debated in the Rajya Sabha, and it remains to be seen whether it will be passed in its current form.

The amendments proposed in the Banking Laws (Amendment) Bill, 2024 aim to address contemporary challenges and strengthen the Indian banking system. The inclusion of multiple nominees, resolution of unclaimed bank balances, and enhanced governance framework are expected to bring about positive changes in the banking industry, benefiting both customers and the overall financial landscape.