New Delhi: Union Finance Minister Nirmala Sitharaman has introduced the Banking Laws (Amendment) Bill 2024. The bill is anticipated to increase the number of nominees per bank account, redefining substantial interest in bank directorships. The bill is also expected to implement auditor compensation for more flexibility.
The reforms can impact the Reserve Bank of India Act, the Banking Regulation Act and the State Bank of India Act. The Union Cabinet has approved the mentioned changes, which are a part of a larger initiative to strengthen investor protection and bank governance. Changes have also been done to the Banking companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
As promised in the finance ministers’ 2023–24 budget speech, the bill attempts to strengthen bank governance and investor protection. It also suggests moving the current second and fourth Fridays for banks regulatory reporting dates to the 15th and last day of each month.
