Nirmala Sitharaman Unveils New Banking Bill: Key Changes Explained
As Parliament begins its Budget Session on Friday, Union Finance Minister Nirmala Sitharaman will introduce several new Bills, including the Banking Laws Amendment Bill, 2024, on the floor of the House. The Bill will seek to amend key legislations like the Reserve Bank of India Act, the Banking Regulation Act, and the State Bank of India Act, amongst others, in the Lok Sabha. The Finance Minister will also move amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies Acquisition and Transfer of Undertakings Act, 1980.
Banking Bill: New Nominees & Rules
According to the PTI report, one of the major proposals in the bill is to increase the number of nominees that can be provided for a bank account from the present one to four. This move will give much more flexibility and choices for the account holders.
The Bill also revises the definition of 'substantial interest' for bank directorship by increasing the threshold from Rs 5 lakh to Rs 2 crore, updating a limit that has remained unchanged for about 60 years.
The Bill aims to give banks additional powers to determine the remuneration for statutory auditors, making financial management more flexible. It also aimed to amend the reporting schedule of regulatory compliance from the present second and fourth Fridays of every month to the 15th and last day of every month, respectively.
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New Maritime Bill
According to the revised Lok Sabha business schedule, the Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, shall move a bill to determine the responsibilities, liabilities, rights, and immunities of carriers in connection with the carriage of goods by sea. It shall further provide that the right of suit and liability under a bill of lading shall pass to the consignee or endorsee therein named upon and by the transfer of property in the goods concerned, either by endorsement or consignment.
Parliament's Agenda: New Bills & Changes
A Bill for amendments in the Railways Act, 1989, will be introduced by Union Railway Minister Ashwini Vaishnaw. The Union Civil Aviation Minister, Rammohan Naidu Kinjarapu, will move a bill to regulate all aspects relating to the design, manufacture, maintenance of aircraft, and other matters connected therewith or incidental thereto. Union Minister Arjun Ram Meghwal will move a Bill to reserve seats for Scheduled Tribes in the Legislative Assembly of Goa under Article 332 of the Constitution. This measure aims to ensure effective democratic participation following the inclusion of certain communities in the Scheduled Tribes list.
Union Minister of Parliamentary Affairs Kiren Rijiju and a Congress MP will move a motion in the Lok Sabha for agreement with the Third Report of the Business Advisory Committee, presented on August 8, 2024. The agenda also includes the tabling of papers by various ministers, including Prataprao Jadhav, Pankaj Chaudhary, Anupriya Patel, Shantanu Thakur, and Savitri Thakur.
