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Informist, Wednesday, Aug 7, 2024

 

NEW DELHI – The government will likely table the Banking laws (Amendment) Bill 2024 in Lok Sabha this week after the Union Cabinet gave it a nod on Friday, a senior finance ministry official said today. The amendments are aimed at bringing changes to banking regulations, including redefining substantial interest for directors, increasing the number of nominees for bank deposits and changes in compliance reporting dates, the official said. 

 

Though it will likely be tabled in Lok Sabha this week, there are thin chances it will be passed in this session, the official said. If it is not passed in this session, it will likely be taken up for discussion in the winter session of Parliament. The ongoing Parliament session is scheduled to end on Monday. 

 

Of the three amendments that are proposed, the first is regarding raising the number of nominees to claim fixed deposit in case of the account holder's death to four, from the current one. This is aimed at reducing unclaimed deposits in banks. 

 

The second amendment is about increasing the 'substantial interest' for directors, which the Banking Regulation Act defines as "holding of a beneficial interest by an individual or his spouse or minor child, whether singly or taken together in the shares thereof, the amount paid-up on which exceeds 5 lakhs (500,000 rupees) or 10% of the paid-up capital of the company, whichever is less." The official said the proposal is to increase the limit of substantial interest of directors to 20 mln rupees or 10% of paid-up capital.

 

The other amendment proposes to change the banks' reporting dates for various compliances to 15th and 30th of the month from the current second and fourth Friday, the official said.  End

 

Reported by Priyasmita Dutta

Edited by Vidhi Verma

 

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