Lok Sabha passes Banking Laws Bill allowing four nominees in bank accounts

The Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024. The Bill seeks to amend 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 also seeks to increase the option for nominees per bank account to four, from the



existing one.

The bill also proposes to redefine substantial interest for directorships, which could increase to two crore rupees instead of the current limit of five lakh rupees. Moving the bill, Union Finance Minister Nirmala Sitharaman said that the proposed amendment will strengthen the governance in the banking sector apart from enhancing customer convenience.