Banking Laws (Amendment) Bill to strengthen governance, enhance customer convenience: FM
New Delhi (PTI): The changes proposed through the Banking Laws (Amendment) Bill, 2024, will strengthen governance in the sector and enhance customer convenience, Finance Minister Nirmala Sitharaman said on Tuesday.
Moving the bill for consideration and passing in the Lok Sabha, the Minister said a total of 19 amendments are being proposed to bring changes in 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) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
The bill proposes to allow a bank account holder to have up to four nominees in his/her account.
The bill also seeks to transfer unclaimed dividends, shares, and interest or redemption of bonds to the Investor Education and Protection Fund (IEPF), allowing individuals to claim transfers or refunds from the fund, thus safeguarding investors' interests.
As the banking sector has evolved over the years and with a view to improving bank governance and investor protection, it has become necessary to make certain amendments to five Acts, according to a statement of Objects and Reasons of the Bill.
"The proposed amendments will strengthen governance in the banking sector and enhance customer convenience with respect to nomination and protection of investors," Sitharaman said while moving the bill.
The proposed bill seeks to improve governance standards, provide consistency in reporting by banks to the Reserve Bank of India, ensure better protection for depositors and investors, improve audit quality in public sector banks, bring customer convenience in respect of nominations and provide an increase in the tenure of the directors in co-operative banks.
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, which was fixed almost six decades ago.
With regard to cooperatives operating in the banking space, Sitharaman said the amendments in the Banking Regulations Act would apply only to cooperative banks or that part of the cooperatives which are operating as banks.
The bill proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011.
Once passed, the bill would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank.
The bill also seeks to give greater freedom to banks in deciding the remuneration to be paid to statutory auditors.
It also seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays.
The announcement about amendmenting the Banking Regulation Act was made by the Finance Minister in the 2023-24 Budget speech.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Minister Parameshwara says remarks on properties linked to drug peddlers 'misunderstood'
Tumakuru (PTI): Karnataka Home Minister G Parameshwara on Saturday said his recent remarks on the demolition of properties linked to those involved in narcotics trade were "misunderstood and misinterpreted".
His clarification follows remarks made two days ago on the government's uncompromising crackdown on the drug menace, including action against properties linked to foreign nationals allegedly involved in drug trafficking.
"It is unfortunate. It is taken in the wrong sense. I didn't mean that tomorrow itself I am going to send bulldozers and demolish the houses. That was not my intention. It was wrongly taken," he told reporters here.
Responding to Congress MLC K Abdul Jabbar's question in the legislative council on the growing drug menace in Bengaluru, Davangere and coastal districts, the minister on Thursday detailed the extensive enforcement measures initiated since the Congress government assumed office.
Pointing to the involvement of some foreign nationals, the minister had said, "Many foreign students from African countries have come to Karnataka. They are into the drug business. We catch them and register cases against them, but they want the case to be registered because once the case is registered, we cannot deport them."
"We have gone to the extent of demolishing the rented building where they stay," he had said.
