Finance minister Nirmala Sitharaman piloted the Banking Laws (Amendment) Bill which was approved by a voice vote

Lok Sabha passes Banking Laws (Amendment Bill, 2024) to strengthen governance, enhance customer convenience, and reduce unclaimed deposits.

Introduced in August this year, the Bill seeks to increase the option for nominees per bank account to four, from existing one, among others.

In a bid to improve bank governance and enhance investor protection, the government on Tuesday passed an amendment bill in the Lok Sabha that brings about changes to five banking laws.

Finance Minister Nirmala Sitharaman speaking in the house said that Indian banks have remained healthy, adding that we can not afford to have struggling banks. She said the credit for this should go to the Reserve Bank of India and the Finance Ministry for the banking system to not have collapsed.

The Lok Sabha has passed the Banking Laws Amendment Bill 2024, enabling bank account holders to designate up to four nominees.

Bill, 2024, which allows bank account holders to have up to four nominees in their accounts. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh,

Banks are being professionally run today, metrics healthy so they can go to the market and raise bonds, raise loans & run their business accordingly, says Nirmala Sitharaman.

Another proposed change in the Bill relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh fixed almost six decade

She said the changes proposed through the Bill will strengthen governance in the sector and enhance customer convenience.

On December 3, 2024, Finance Minister Nirmala Sitharaman introduced the Banking Laws Bill 2024, proposing 19 amendments aimed at improving investor protection, governance, and customer convenience. Key changes include allowing four nominees per account,