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The Banking Laws Amendment Bill, 2024 proposes several changes to existing banking regulations, including extending the tenure of directors in co-operative banks and allowing certain directors to serve on multiple boards. It also raises the threshold for substantial interest in a bank from 5 lakhs to 2 crores, and shifts the decision-making power regarding auditor remuneration from the RBI to the banks themselves. Additionally, the bill modifies the handling of unpaid dividends and bonds, transferring them to the Investor Education and Protection Fund after seven years.

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4 views1 page

Descriptive GS Notes

The Banking Laws Amendment Bill, 2024 proposes several changes to existing banking regulations, including extending the tenure of directors in co-operative banks and allowing certain directors to serve on multiple boards. It also raises the threshold for substantial interest in a bank from 5 lakhs to 2 crores, and shifts the decision-making power regarding auditor remuneration from the RBI to the banks themselves. Additionally, the bill modifies the handling of unpaid dividends and bonds, transferring them to the Investor Education and Protection Fund after seven years.

Uploaded by

kmzdr1
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Banking Laws Amendment Bill,2024

RBI act, 1934- Establishment of RBI


Banking Regulation Act, 1949-Establishment, licensing and Governance of Banks
SBI act, 1955- Multiple banks were merged in SBI and thus nationalised hereafter
Banking companies Act,1970- 14 banks were nationalised
Banking companies act, 1980- Another 6 banks were nationalised
The tenure of Director of Co-operative banks was increased from 8 consecutive years to 10 years
The directors of a co-operative bank can’t serve in the board of another bank exception of directors
appointed by RBI, however in current amendment bill, the directors of Central co-operative banks
can serve in the boards of state co-operative banks if they are members of that bank
A person along with his wife and minor child if has 10% of paid up capital or 5 lacs Rs worth of shares
in the company, its considered as substantial interest and comes under stricter regulation, however
its now increased to 2 crore.
The remuneration of auditors of bank is earlier decide by RBI on consultation with central govt but
under the current amendment bill, it will decide by the Bank independently.
Unpaid/Unclaimed dividends were transferred to Unpaid dividend account and the to IEPF after 7
years and now with current amendment bill, bonds with unpaid interest or redemption amount will
be transferred to IEPF after 7 years

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