Current Affairs-Topics

Banking Laws (Amendment) Bill 2024: Key Reforms Unveiled

Banking Laws Amendment Bill passed in Lok Sabha. Now, Bank account holders can now nominate up to four individuals for their accounts, with two options: simultaneous or successive nominations. This aims to resolve inheritance complexities and reduce legal complications for legal heirs.

Nomination Flexibility and Inheritance Simplification

  • Recently, Banking Laws Amendment Bill passed in Lok Sabha.
  • Bill proposed by Finance Minister Nirmala Sitharaman
  • Bank account holders can now nominate up to four individuals for their accounts

Two nomination options available:

    • Simultaneous nomination: Nominees can be assigned specific percentage shares
    • Successive nomination: Nominees inherit in a predefined order
  • For safety lockers, only successive nominations will be permitted
  • Aims to resolve inheritance complexities, especially post-COVID-19 pandemic
  • Reduces potential legal complications for legal heirs
  • Makes fund distribution smoother and more transparent

Broader Banking Sector Perspectives

  • Finance Minister Nirmala Sitharaman highlights banking sector robustness

Amendments cover five key Acts:

    • Reserve Bank of India Act, 1934
    • Banking Regulation Act, 1949
    • State Bank of India Act, 1955
    • Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980

Addresses concerns raised by opposition members:

    • Cybersecurity considerations
    • Simplified KYC processes
  • Acknowledges declining bank deposit share in household savings
  • Aims to make banking more customer-friendly and technologically adaptive

Governance and Regulatory Amendments

  • Redefining "substantial interest" for bank directorships
    • Threshold increased from ₹5 lakh to ₹2 crore
    • First update in nearly six decades
  • Increased director tenure in cooperative banks from 8 to 10 years
  • Allows directors of Central Cooperative Banks to serve on State Cooperative Bank boards
  • Provides banks greater autonomy in:
    • Deciding statutory auditor remuneration
    • Regulatory reporting deadlines
  • New reporting dates set to 15th and last day of every month
  • Focused on improving banking sector governance and consistency

Expert Recommendations

  • Legal experts suggest ensuring alignment between will legatees and nominees
  • Industry professionals recommend developing a standardized transmission process similar to securities market
  • Potential for creating unique identifiers to streamline inheritance claims

More Related Articles

Reliance and Nifty50

It is crucial to have knowledge of economic subjects like Nifty50 in order to do well on SSC exams. Nifty50 is an indicator that tracks the stock market performance of the top 50 companies listed

Kallapu-Sajipa Riverfront Road Project

When it comes to building new infrastructure, Karnataka is in the forefront. There are a lot of big initiatives in the state that are boosting the economy and making things more accessible.

India's Manufacturing Vision 2025

India's manufacturing policies have recently gained significant attention as the government seeks to strengthen the country's industrial sector and achieve long-term economic growth. The foc

What Drives the Gold Price Rs 1 Lakh?

Gold prices in India have surged to an all-time high, surpassing the Rs 1 Lakh mark per 10 grams for the first time. This significant rise in the Gold Price of Rs 1 Lakh is linked to various g

India’s GDP Growth Rate Falls to 6.4%

Fitch has revised its 2025 GDP forecast for India from 6.6% to 6.4%, a decrease of 10 basis points. This is the most recent global economic news. While this may not seem like a major drop, it’

Boosting Opportunities in the Gig Economy

India is witnessing a quiet revolution in how employment is created. The announcement of 12 lakh jobs in India by 2025 is a huge step toward redefining the gig and logistics economy. With

Nirmala Sitharaman Presents the 2024-25 Economic Survey – An In-Depth Analysis

The Economic Survey 2024-25 emphasizes India's consistent economic growth, forecasting a 6.4% GDP increase in FY25. Key highlights include controlled inflation, robust trade performanc

MoMSME Unveils TEAM Initiative to Enhance Digital Presence of MSMEs in India

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) has introduced the MSME Trade Enablement and Marketing (TEAM) Initiative, a pioneering initiative designed to strengthen the d

Union Budget 2025: Understanding the Concept of 'Bahi Khata'

The ‘bahi khata’ is a traditional Indian ledger employed for accounting and maintaining records. It is typically a bound book, often covered in cloth, used to track financial t

CRED Introduces e₹ Wallet, Boosting India’s Digital Currency Adoption

CRED has become the first fintech platform to incorporate India’s e₹ wallet, a digital currency supported by the RBI. In partnership with YES Bank, CRED enables users to store and

Toppers

anil kumar
Akshay kuamr
geeta kumari
shubham