Banking Laws among 16 bills on agenda for Parliament Winter Session

The Union government will table the Banking Laws (Amendment) Bill, 2024, during the Parliament’s Winter session, which began on Monday, November 25.

The government has outlined a legislative agenda featuring 16 bills.

The Banking Laws Amendment Bill was introduced on August 9, 2024, during the Parliament’s Monsoon session.

While the government had planned to pass the bill in the Lok Sabha on Monday, the parliament was adjourned and will resume on Wednesday, November 27.

What is the Banking Laws (Amendment) Bill, 2024?

The Banking Laws (Amendment) Bill seeks to reform India’s banking system by amending several pieces of legislation, including:

1. Reserve Bank of India (RBI) Act, 1934,
2. Banking Regulation Act, 1949,
3. State Bank of India Act, 1955,
4. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and
5. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Key features of the bill

Increased bank account nominations

The Banking Regulation Act currently limits the number of nominees per bank account to one.

The bill suggests increasing the number of nominees per bank account (single or joint deposit holders) from one to four.

Revised definition of ‘fortnight’ for banks

The RBI Act requires banks to submit a statutory report every fortnight. Current reports are based on a Saturday-to-Friday fortnight cycle.

The bill proposes to change the definition of ‘fortnight’ from two weeks ending Friday to a period from:

1. First to 15th of each month or
2. 15th to last day of the month

Settlement of unclaimed amounts

The bill expands the range of assets that can be transferred to the Investor Education and Protection Fund (IEPF). Previously, it only included unclaimed dividends. Now, it also covers shares with unpaid or unclaimed dividends and funds from bonds, such as interest or redemption amounts, that have remained unclaimed for seven years.

It also allows commercial banks more flexibility in setting the pay for their auditors and proposes extending the maximum tenure of directors in cooperative banks from seven years to 10 years.

The list of bills up for consideration during the Parliament’s Winter session are:

1. The Banking Laws (Amendment) Bill, 2024
2. The Waqf (Amendment) Bill, 2024
3. The Disaster Management (Amendment) Bill, 2024
4. The Readjustment of Representation of Scheduled Tribes in Assembly Constituencies of the State of Goa Bill, 2024
5. The Mussalman Wakf (Repeal) Bill, 2024
6. The Bharatiya Vayuyan Vidheyak, 2024
7. The Railways (Amendment) Bill, 2024
8. The Carriage of Goods by Sea Bill, 2024
9. The Bills of Lading Bill, 2024
10. The Oilfields (Regulation and Development) Amendment Bill, 2024
11. The Boilers Bill, 2024
12. The Merchant Shipping Bill, 2024
13. The Coastal Shipping Bill, 2024
14. The Indian Ports Bill, 2024
15. The Punjab Courts (Amendment) Bill, 2024
16. The Rashtriya Sahkari Vishwavidyalaya Bill, 2024

The parliament’s winter session will conclude on December 20.