Banking Laws (Amendment Bill, 2024) has been passed by Lok Sabha

Current Context: The Banking Laws (Amendment) Bill, 2024 was passed by the Lok Sabha on December 3, 2024. This bill aims to introduce several important changes to enhance the regulatory framework and improve the overall functioning of the banking sector.

• Here are the key features of the bill:
• Nominees for Bank Accounts: The bill allows account holders to nominate up to four nominees for their bank accounts. This provision aims to ensure smoother transfer of funds in case of the account holder's demise, providing better security and flexibility for account holders.
• Redefining 'Substantial Interest': The bill redefines the thresholds for what constitutes 'substantial interest' in a banking company. This change is intended to align with international best practices and to enhance transparency in the ownership structures of banks.
• Regulatory Reporting Deadlines: The bill modifies the deadlines for various regulatory reports that banks are required to submit. This amendment aims to streamline the reporting process and ensure that banks can comply with regulatory requirements promptly without compromising the accuracy of the information provided.
• Strengthening Governance: The bill includes provisions to strengthen the governance framework of banks, ensuring better oversight and management practices. This includes measures to enhance the accountability of bank executives and board members.

Question:

1 What is the maximum number of nominees allowed for a bank account as per the Banking Laws (Amendment) Bill, 2024?

• A) 4
• B) 3
• C) 2
• D) 5

Answer: A) The bill allows account holders to nominate up to four nominees for their bank accounts.