The Banking Laws (Amendment) Bill, 2024, passed by the Lok Sabha, brings significant updates to improve banking operations and customer convenience. These reforms, introduced by Finance Minister Nirmala Sitharaman, aim to modernise the banking sector and ensure stability.
Key Changes in Nomination Rules
The amendment allows account holders to allocate funds to multiple nominees in specified proportions, replacing the earlier provision of a single nominee.
For bank lockers, a sequential nomination system ensures smooth access rights during unforeseen events.
These updates simplify inheritance processes, enhance depositor rights, and build public trust in banking institutions.
Enhanced Governance and Transparency
Public sector banks now have autonomy in determining auditor remuneration.
This move promotes competitive hiring, ensuring quality financial oversight and reducing risks of mismanagement.
Improved governance is expected to encourage more people to join formal financial systems.
Benefits for Customers
Flexible nominations: Account holders can customise benefit distribution among nominees.
Simplified processes: Asset transfers and inheritance become quicker and hassle-free.
Customer-centric updates: Reforms align with modern banking needs, boosting convenience and confidence.
With these changes, the Banking Laws (Amendment) Bill, 2024, strengthens India’s banking infrastructure, creating a more inclusive, secure, and efficient financial system.
