Banking Amendment Bill – 2024 Passes in Lok Sabha: Nominee of Bank Accounts to FD Rules will Change

Banking Amendment Bill-2024 has been passed in Lok Sabha. Union Finance Minister Nirmala Sitharaman presented the bill in the House and deliberated on its 19 amendments. After the introduction of this bill, bank account holders will see many changes, starting from accounts to fixed deposits (FDs).

Banking Amendment Bill-2024

This amendment has been introduced to facilitate the customer and streamline the banking system. After the Banking Amendment Bill-2024 is passed in the Lok Sabha, the account holder will have the right to add 4 nominees starting from his bank account in the field of fixed deposits.Till now the account holder was allowed to have only one nominee in the bank account. Such a change in the rules has been made to pay the unclaimed amount to the heirs.

Account Holder will Decide How they Devide the Money to the Nominees

According to the data of the Reserve Bank of India (RBI), as of March 2024, around 78,000 crore rupees are unclaimed in various banks. As a maximum of 4 nominees can be named in a bank account or a fixed deposit (FD), the account holder can decide on his own whether he has to return the money to all the nominees together or how much to pay separately to each nominee. Similarly, in the second way the account holder can keep the nominee in order. The account holder can also suggest how much to pay someone. In this way, the nominee can later get the depositor’s final payment from the bank.

New Banking Bill Rules ?

• The new rules will facilitate the bank to transfer the saved balance to the family of the account holder.
• According to the new banking bill, the directors of the Central Co-operative Bank can work in the State Co-operative Bank.
• The term of office of the director of Co-operative Bank has been increased from 8 years to 10 years. However, this amended rule will not apply to the chairman and wholetime director of co-operative banks.
• According to the amendment, government banks will have the right to set auditors’ fees and hire top label talent.
• In the new law, the deadline for banks to submit reports to RBI has been changed.
• According to the new rules, banks can now report to the RBI at the end of 15 days, one month and at the end of a quarter.
• It is worth noting that now banks had to report to RBI every Friday.

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