Banking Laws (Amendment) Bill Update: Nomination Rules for Bank Accounts

Union Finance Minister Nirmala Sitharaman on Friday tabled the Banking Laws (Amendment) Bill, 2024, in the Lok Sabha, which was tweaked to make some crucial changes to key banking regulations. The proposed amendments will affect the Reserve Bank of India Act, the Banking Regulation Act, and the State Bank of India Act, among others.

Banking Laws Minister of State for Finance, Pankaj Chaudhary, introduced the bill in the Lok Sabha on Friday. This bill proposes significant changes in the banking sector, including an increase in the number of nominees allowed per bank account from the current limit of one to up to four.

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Banking Amendment Bill

One of the significant amendments proposed in the bill is the redefinition of ‘substantial interest’ in bank directorships. The threshold for substantial interest is proposed to be raised to Rs 2 crore from the existing Rs 5 lakh, a limit that has remained unchanged for nearly six decades. On Friday, Minister of State for Finance Pankaj Chaudhary introduced a notable amendment to the laws in the Lok Sabha. This proposed bill outlines significant reforms intended to enhance the banking sector’s operational framework.

Also Read: अनुशासन तोड़ने के आरोप में अंतिम पंघाल को ओलंपिक विलेज से किया गया बाहर

Impact of Expanding Bank Account Nominee Capacity

The expansion of nominee capacity is part of a broader trend to modernize and streamline financial regulations. By introducing these changes, the Banking Amendment Bill aims to enhance the overall efficiency and effectiveness of financial operations, while better addressing the needs of account holders and their families. Once enacted, this reform could lead to significant improvements in how individuals plan for their financial future and manage their estates.

Also Read: विनेश फोगाट के सिल्वर मेडल पर फैसला आज, मशहूर वकील हरीश साल्वे लड़ेंगे केस