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

RBI UMI & Digital Finance

The Reserve Bank of India (RBI) has introduced the Unified Markets Interface (RBI UMI), a pioneering financial market infrastructure aimed at asset tokenization. Announced in 2025 by RBI Gove

ADB Lowers India’s Growth

The Asian Development Bank (ADB) has recently revised India’s economic growth forecast, a key update for students preparing for current affairs sections in exams like SSC. According to the A

RBI New Gold Loan Rules 2025

In a major step to strengthen industrial financing and support the manufacturing sector, the Reserve Bank of India (RBI) has introduced the RBI New Gold Loan Rules 2025. These reforms, announc

LEADS 2025 – State-Wise Logistics Ranking

On 20 September 2025, Union Commerce & Industry Minister Shri Piyush Goyal launched LEADS 2025 (Logistics Ease Across Different States), a landmark initiative aimed at enhancing logistics effi

India WPI Inflation Rises to 0.52%

India’s wholesale price index (WPI)-based inflation turned positive in August 2025, rising to 0.52% year-on-year. This is a significant rebound from -0.58% in August 2024, signaling an upwar

FDI India Trends 2025

Foreign Direct Investment (FDI) remains a key driver of India’s economic growth. It supports capital formation, industrial development, employment generation, and overall economic stability.

56th GST Council 2025 Decisions

The 56th GST Council Meeting 2025, chaired by Union Finance Minister Nirmala Sitharaman on 3rd September 2025 in New Delhi, marked a historic overhaul of India’s indirect tax system. The Cou

India’s RBI Forex Reserves Data

India’s foreign exchange reserves play a crucial role in maintaining the country’s economic stability. According to the latest RBI Forex Reserves Data for August 2025, India’s re

Ajaya Babu Valluri Wins Gold

Indian weightlifting continues to make the nation proud on the international stage, and Ajaya Babu Valluri has once again proved why he is one of India’s brightest stars in the sport. At the

India Africa Trade Milestone 2025

India and Africa have recently marked a significant achievement in their bilateral trade relations, as Union Minister Kirti Vardhan Singh announced that India-Africa trade has crossed USD 100 bill