The new banking laws amendment bill 2024 brought some changes in the banking system providing more options to customers and banks. It will make some changes to the Reserve Bank of India Act of 1934, The Banking Regulation Act, The State Bank Of India Act, and the Banking Companies Act. Let us look at The New Banking Laws Amendment Bill 2024 and its impact on the banking sector.
What Impact Does The New Banking Laws Amendment Bill 2024 Have On The Banking Sector?
The new amendments first change will be in the number of nominees. A bank account can have only one nominee earlier. However, the amendment will now allow the bank holder four nominees. Apart from that, the threshold limit for the substantial interest for directorships will increase from Rs. 5 Lakhs to Rs. 2 Crores. The banks used to give their regulatory reports on the second and fourth Fridays. Thus, they can now give reports on the 15th and last date of every month.
The banks will now be free to make changes in the pay for the statutory auditors. Union Cabinet may give its approval to the bill on 9 August 2024, Friday. Finance Minister Sitharaman is focusing on the needs and demands of the common man to provide them benefits from the new amendments. The amendments keep taking place to improve the working of the system. The common people’s needs change with the change in the economy. Thus, it is important to make these amendments on time.
If we talk about the bank account number of the nominee. In the case of one nominee, there was no debate as the amount directly transfer to the nominee. However, many times the nominee was not able to come and claim it. Thus, having four nominees for a bank account will help the amount transfer to the loved ones of the account holder after his/her death. The bank will also have the freedom to set pay for its statutory auditors according to the need.
The laws such as the Banking Regulation Act 1949, Reserve Bank of Idia Act 1934, and Banking Companies Act 1970 will have some changes in it. Finance Minister Sitharaman is making the changes to meet the needs of the common people. The banking sector has developed a lot. The new amendments are making the workings of the banking system even better with time. Apart from that, Private banks are also a competition for the public sector banks. Stay tuned for more information.