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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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1 year ago

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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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West Bengal Governor dissolves Assembly amid political transition 

Governor R N Ravi dissolved the West Bengal Assembly after the 2026 poll results, with the BJP securing a majority in the state elections.

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May 7, 2026

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The West Bengal Legislative Assembly was dissolved following the conclusion of the 2026 Assembly elections, in which the Bharatiya Janata Party secured a clear majority in the state.

Governor R N Ravi issued the order dissolving the Assembly as the state prepared for the transition of power after the election results. According to reports, the BJP won 207 seats in the 294-member Assembly, while the Trinamool Congress secured 80 seats.

Chief Minister Mamata Banerjee questioned the election outcome and alleged irregularities in the poll process, claiming the mandate had been “looted”.

The dissolution came as the tenure of the existing Assembly ended on May 7, 2026. The development has sparked political discussions over the formation of the next government in the state.

Meanwhile, Mamata Banerjee held a meeting with newly elected Trinamool Congress MLAs in Kolkata and reportedly raised concerns over internal sabotage during the elections.

The BJP is expected to begin the formal process of government formation in West Bengal after its decisive victory in the Assembly polls.

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Eknath Shinde’s helicopter returns to Mumbai mid-flight due to bad weather

Maharashtra Deputy Chief Minister Eknath Shinde’s helicopter was forced to return to Mumbai after the pilot detected approaching storm conditions during a flight to Thane district.

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1 hour ago

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May 7, 2026

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Eknath_shinde (1)

A helicopter carrying Maharashtra Deputy Chief Minister Eknath Shinde was forced to return to Mumbai on Thursday after encountering adverse weather conditions during a flight to Thane district.

According to officials, Shinde had departed from Mahalaxmi Racecourse in south Mumbai around 3.30 pm and was travelling to Murbad in Thane district to attend a wedding function related to a party worker’s family.

The helicopter reportedly reached the Airoli area in Navi Mumbai when the pilot noticed an approaching storm and informed the deputy chief minister about the deteriorating weather conditions. Following the alert, the flight was turned back as a precautionary measure.

The helicopter later landed safely at the Pawan Hans facility in Juhu, Mumbai. Officials said Shinde was accompanied by members of his staff, including personal assistant Prabhakar Kale, special executive officer Balsingh Rajput and media adviser Vinay Patrdukar.

The incident comes amid changing weather conditions and storm activity reported in parts of Maharashtra in recent days.

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Nitish Kumar’s son Nishant among 32 inducted in Bihar cabinet expansion

Nishant Kumar entered the Bihar cabinet for the first time as 32 ministers from NDA allies took oath in a major expansion of the state government.

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5 hours ago

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May 7, 2026

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Bihar government cabinet

A major cabinet expansion took place in Bihar on Thursday, with 32 leaders from the ruling NDA alliance inducted into the state government. Among the prominent names was Nishant Kumar, son of former Bihar chief minister Nitish Kumar, who entered the cabinet for the first time.

The expansion included representatives from all major NDA allies in the state. According to reports, the BJP secured 15 ministerial berths, while JD(U) got 13 positions. Two ministers were inducted from Lok Janshakti Party (Ram Vilas), while Hindustani Awam Morcha and Rashtriya Lok Morcha received one berth each.

The oath-taking ceremony was held in Patna in the presence of senior NDA leaders, including Prime Minister Narendra Modi, Union Home Minister Amit Shah and Defence Minister Rajnath Singh.

Nishant Kumar’s induction comes weeks after he formally entered active politics. His entry into the Bihar cabinet is being viewed as a significant development for JD(U), which had long projected an anti-dynasty image under Nitish Kumar’s leadership.

The cabinet reshuffle follows Nitish Kumar’s move to the Rajya Sabha earlier this year and the formation of the government led by Chief Minister Samrat Choudhary.

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