Banking Laws (Amendment) Bill, 2024 — Key Highlights

#1. Nomination Facility

Bank account holders can now nominate up to four nominees.

Deposit holders have the option of successive or simultaneous nominations, while locker holders will be limited to successive nominations.

#2. Substantial Interest Redefined

The 'substantial interest' limit for directorships has been increased from ₹5 lakh to ₹2 crore, addressing inflation and modern banking needs.

#3. Tenure of Cooperative Bank Directors

The maximum tenure for directors (excluding the chairman and whole-time directors) in cooperative banks is extended from 8 years to 10 years, aligning with the Constitution (Ninety-Seventh Amendment) Act, 2011

#4. Dual Directorship in Cooperative Banks

A director of a Central Cooperative Bank can now serve on the board of a State Cooperative Bank.

#5. Statutory Auditor Remuneration

Banks gain greater freedom to determine the remuneration for their statutory auditors.

#6. Regulatory Compliance Reporting

Reporting dates for banks will now be on the 15th and last day of every month, replacing the second and fourth Fridays.

This proposed amendment aims to modernize regulations, enhance depositor convenience, and improve governance within the banking sector.