{"id":33185,"date":"2024-12-04T18:32:25","date_gmt":"2024-12-04T13:02:25","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=33185"},"modified":"2024-12-14T17:57:25","modified_gmt":"2024-12-14T12:27:25","slug":"banking-laws-amendment-bill-2024","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/04-12-2024\/banking-laws-amendment-bill-2024","title":{"rendered":"Banking Laws (Amendment) Bill, 2024"},"content":{"rendered":"\n<p><strong>Syllabus :GS 3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Lok Sabha passed the <strong>Banking Laws (Amendment) Bill, 2024<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It amends the:\u00a0 \n<ul class=\"wp-block-list\">\n<li>(i) <a href=\"https:\/\/www.nextias.com\/blog\/reserve-bank-of-india-rbi\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/reserve-bank-of-india-rbi\/\"><strong>Reserve Bank of India<\/strong><\/a> (RBI) Act, 1934, <\/li>\n\n\n\n<li>(ii) Banking Regulation Act, 1949, <\/li>\n\n\n\n<li>(iii) State Bank of India Act, 1955, <\/li>\n\n\n\n<li>(iv) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and <\/li>\n\n\n\n<li>(v) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Changes Made<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Redefining &#8220;Fortnight&#8221; for Cash Reserves: <\/strong>Shifting to a calendar month-based definition makes calculating the average daily balance for cash reserves simpler and more aligned with standard accounting practices.\n<ul class=\"wp-block-list\">\n<li>Under the RBI Act, scheduled banks must maintain a certain level of average daily balance with the RBI as cash reserves.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Tenure of Co-operative Bank Directors: <\/strong>Extending the tenure to 10 years may provide more stability and continuity in the leadership of co-operative banks.<\/li>\n\n\n\n<li><strong>Prohibition on Common Directors: <\/strong>The exemption for central co-operative bank directors serving on state co-operative bank boards could facilitate better coordination and collaboration within the co-operative banking sector.<\/li>\n\n\n\n<li><strong>Substantial Interest in a Company:<\/strong> Raising the threshold to \u20b92 crore reflects the changing economic landscape and may encourage greater investment in companies by individuals associated with banks.<\/li>\n\n\n\n<li><strong>Nomination: <\/strong>Allowing up to four nominees provides greater flexibility for depositors in distributing their assets and can help streamline the inheritance process.<\/li>\n\n\n\n<li><strong>Investor Protection: <\/strong>This strengthens investor protection mechanisms and promotes transparency in the handling of unclaimed funds.<\/li>\n\n\n\n<li><strong>Remuneration of Auditors:<\/strong> Giving banks the power to decide auditor remuneration could provide more flexibility and allow them to attract qualified auditors.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: PRS<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-33185","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=33185"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33185\/revisions"}],"predecessor-version":[{"id":33714,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33185\/revisions\/33714"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=33185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=33185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=33185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}