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Finance Minister Nirmala Sitharaman moves Banking Laws Amendment Bill, says will strengthen governance

The proposed amendments seek to increase the tenure of directors other than the chairperson and full-time directors in cooperative banks from eight years to ten years.

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Finance Minister Nirmala Sitharaman moves Banking Laws Amendment Bill, says will strengthen governance

Union Finance Minister Nirmala Sitharaman today said that the Banking Laws (Amendment) Bill will strengthen governance in the Indian banking sector besides enhancing consumer’s and customer’s convenience with respect to nominations and protection of investors.

The Finance Minister moved the Banking Laws (Amendment) Bill, 2024, for consideration and passing in Lok Sabha. The aforesaid bill seeks to improve governance standards and provide consistency in reporting by banks to the Reserve Bank of India. Furthermore, the amendments will also ensure better protection for depositors and investors and will also improve the quality of services in the public sector banks.

After the bill is passed, the Banking Regulation Act will allow up to four nominees for depositors. This will include provisions for simultaneous and successive nominations, offering greater flexibility and convenience for depositors and their legal heirs, especially concerning deposits, articles, safe custody and safety lockers.

Reports stated that the proposed amendments seek to increase the tenure of directors other than the chairperson and full-time directors in cooperative banks from eight years to ten years. Altogether 19 amendments are proposed in the Banking Laws Amendment Bill 2024. In order to ensure consistency in reporting by banks, the bill provides for reporting to RBI on the last day of every fortnight instead of Fridays.

Under the aegis RBI Act, scheduled banks must maintain a certain level of average daily balance with the RBI as cash reserves. This average daily balance is based on the average of the balances held by banks at the closing of business of each day of a fortnight.

Notably, a fortnight is defined as the period from Saturday to the second following Friday (including both days). The said Bill changes the definition of a fortnight to the period from the first day to the fifteenth day of each month or the sixteenth day to the last day of each month. Additionally, the bill also changes this definition under the Banking Regulation Act where non-scheduled banks are required to maintain cash reserves.

The bill further redefines substantial interest in a company, currently it refers to holding shares of over Rs 5 lakh rupees or 10 per cent of the paid up capital whichever is less, this has been proposed to be hiked to Rs 2 crore. The Centre is also empowered to alter the amount through a notification.

The proposed bill also allows a director of a central cooperative bank to serve on the board of a state cooperative bank. At present, directors can hold positions in only one institution and not more.

The structure of the cooperative bank necessitates this as unless a person is elected to one layer of the cooperative, they can’t get into the next layer and as a result, they will necessarily have to hold a position at more than one place.

The said bill also provides that any person whose shares or unclaimed/unpaid money is transferred to the Investor Education and Protection Fund (IEPF), he can claim the transfer or refund. At present, if money in any account remains unpaid or unclaimed for seven years, it is transferred to the IEPF.

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Shashi Tharoor warns US tariffs on Iran could make Indian exports unviable

Shashi Tharoor has warned that cumulative US tariffs linked to Iran trade could rise to 75%, making most Indian exports to America commercially unviable.

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Shashi Tharoor

Congress MP and chairman of the Standing Committee on Foreign Affairs Shashi Tharoor has expressed serious concern over the United States’ latest tariff announcement targeting countries that continue to trade with Iran, warning that such measures could severely impact Indian exporters.

Reacting to the decision by US President Donald Trump to impose a 25% tariff on countries doing business with Iran, Tharoor said Indian companies would struggle to remain competitive if cumulative tariffs rise to 75%. He noted that India was already at a disadvantage compared to several regional competitors.

Tharoor said he had been troubled by the US tariff regime from the outset, pointing out that India was initially subjected to a 25% tariff while rival exporting nations in Southeast Asia were charged significantly lower rates. According to him, countries such as Vietnam, Thailand, Indonesia, Pakistan and Bangladesh faced tariffs ranging between 15% and 19% on labour-intensive goods exported to the US.

He explained that the situation had worsened with additional sanctions-linked duties. With the existing 25% tariff, another 25% related to Russia-linked sanctions, and a further 25% tied to Iran-related measures, the total burden could rise to 75%. At that level, Tharoor said, most Indian exports would no longer be commercially viable in the American market.

While noting that certain sectors such as pharmaceuticals may continue to export as they are not heavily impacted by sanctions, he warned that other key export categories would be hit hard. Tharoor described the situation as very serious and said it required urgent attention.

The Congress MP also expressed hope that the newly appointed US Ambassador could help facilitate progress on a bilateral trade agreement. He stressed that India could not afford to wait through the entire year for a deal and said an agreement should ideally be concluded in the first quarter of 2026.

Commenting on recent diplomatic engagements between India and the US, Tharoor underlined the need for faster consensus on trade issues. He said that at tariff levels as high as 75%, the idea of a meaningful trade deal loses relevance. According to him, a rate closer to what the UK enjoys with the US, around 15%, would reflect the respect due to a strategic partner.

Tharoor’s remarks come after President Trump announced that any country continuing business with Iran would face a 25% tariff on all trade with the United States, a move that has raised concerns among several trading partners.

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Indian Army symbolizes selfless service and duty, says PM Modi on Army Day

PM Narendra Modi on Army Day praised the Indian Army as a symbol of selfless service and unwavering duty, saluting the courage and sacrifice of its soldiers.

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pm modi speech

On the occasion of Army Day, Prime Minister Narendra Modi on Thursday paid tribute to the Indian Army, describing its soldiers as a symbol of selfless service who protect the nation with unwavering resolve, even in the most challenging circumstances.

In a message shared on social media platform X, the prime minister said the country salutes the courage and steadfast commitment of Indian Army personnel. He noted that their dedication to duty inspires confidence and gratitude among citizens across the country.

“Our soldiers stand as a symbol of selfless service, safeguarding the nation with steadfast resolve, at times under the most challenging conditions,” PM Modi said. He added that the nation remembers with deep respect those who have laid down their lives while serving the country.

Army Day is observed every year on January 15 to commemorate a historic moment in India’s military history. The day marks the appointment of Field Marshal K M Cariappa as the first Indian Commander-in-Chief of the Indian Army in 1949, when he took over from British officer General Sir F R R Bucher.

The occasion serves as a reminder of the Indian Army’s role in defending the country’s sovereignty and honour, as well as the sacrifices made by its personnel in the line of duty.

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Air India, IndiGo flights disrupted after Iran shuts airspace amid US tensions

International flights operated by Air India, IndiGo and SpiceJet were disrupted after Iran shut its airspace, forcing rerouting and cancellations.

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Air india flight

International flights operated by Air India, IndiGo and SpiceJet were disrupted on Thursday after Iran abruptly shut its airspace to commercial aircraft, triggering delays and cancellations on several long-haul routes.

Iran ordered the closure of its airspace without providing an official explanation, as tensions remain elevated between Tehran and Washington and protests continue across the country against Supreme Leader Ayatollah Ali Khamenei.

Indian airlines issue travel advisories

Air India said its flights overflying the region are now operating through alternative routes, resulting in longer flight times and possible delays. The airline also confirmed that some services have been cancelled where rerouting is not feasible.

“Due to the emerging situation in Iran and the subsequent closure of its airspace, Air India flights overflying the region are using alternate routing, which may lead to delays. Some flights are being cancelled where rerouting is currently not possible,” the airline said in a statement on social media.

Passengers were advised to check flight status before travelling to the airport, with the airline reiterating that passenger and crew safety remains its top priority.

IndiGo also acknowledged disruptions to its international network, describing the situation as a “sudden airspace closure” beyond the airline’s control. The carrier said it is working to assist affected passengers by offering alternative travel options.

Customers have been advised to use flexible rebooking options or claim refunds, depending on their preference.

SpiceJet issued a similar advisory, confirming that some of its flights have been impacted due to the closure of Iranian airspace.

Airspace shutdown linked to regional security concerns

According to official notices issued to pilots, Iran’s airspace closure is expected to remain in place until 7:30 am local time. The move comes amid heightened regional tensions and follows earlier shutdowns during military confrontations involving Israel earlier this year.

Aviation risk monitoring platforms have noted that several international airlines are already avoiding Iranian airspace, citing concerns over possible military activity, air defence operations and the risk of misidentification of civilian aircraft.

The situation continues to be monitored closely, with further disruptions possible if the airspace restrictions are extended.

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