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.

In the wake of Cyclone Fengal and severe flooding caused by heavy rains in Tamil Nadu, Prime Minister Narendra Modi spoke with Chief Minister ML Stalin offering assurance and full support to the state amid the crisis.

In a telephonic conversation, Narendra Modi enquired about the extent of the damage in Tamil Nadu, especially in Villupuram, where unprecedented flooding has caused massive disruption. MK Stalin informed him that the state government was handling the disaster effectively, providing relief to those affected. 

The Chief Minister also reiterated his request for financial assistance and urged the central government to send a team for a detailed damage assessment.

Earlier in a post on X, Chief Minister MK Stalin wrote that he urged Prime Minister Modi to provide relief to the people of Tamil Nadu due to this storm and to send a Union committee to carry out a detailed assessment of the storm damage.

MK Stalin on Monday had sent a memorandum to the Prime Minister, seeking Rs 2,000 crore from the National Disaster Response Fund (NDRF) to support restoration and rehabilitation efforts. Furthermore, he also highlighted the overwhelming scale of the disaster, which had surpassed the state’s resources. 

The Chief Minister requested the central government’s intervention to address the immediate and long-term impacts on infrastructure, agriculture, and livelihoods. He said that the state requires Rs 2,475 crore for temporary restoration efforts. 

Reportedly, the cyclone’s impact was particularly severe in Villupuram, where roads, bridges, and residential areas were submerged under floodwaters, cutting off villages and damaging crops. In Tiruvannamalai, five people lost their lives when a boulder fell on their house due to a mudslide triggered by the heavy rains on December 1.

During the call, PM Modi reassured CM Stalin that the government would take immediate action to address the crisis and assist the state in its recovery efforts.

In the Lok Sabha, Samajwadi Party MP Akhilesh Yadav alleged that the violence in Sambhal that occurred during a court-mandated survey of a mosque was a well-planned conspiracy hatched by the BJP. 

The Kannauj MP asserted that the police and the administration were responsible for the violence, which left five dead, and demanded a murder case be filed against the officers. The Samajwadi Party Chief also pointed out that bypolls were supposed to be held on November 13, but it was postponed to November 20.

A massive violence broke out in Uttar Pradesh’s Sambhal last week during a protest against a court-ordered survey of the Mughal-era Shahi Jama Masjid. Reports said that the order was passed following claims that the mosque was constructed on the ruins of a Hindu temple.

Furthermore, Akhilesh Yadav also pointed out the alacrity with which the order for the survey of the mosque was passed even before listening to the other side. He said that on November 19, a survey was conducted, and the report was to be given to the court. He continued that later on November 24, another survey was conducted, during which people gathered to know the reason for the survey. He added that the Circle Officer abused the people gathered there and resorted to lathicharge. Following, police opened fire, during which dozens were injured and five were killed, he alleged.

Reportedly, five people died on November 24 after a mob pelted stones at a team of officials that was conducting a court-ordered survey of a Mughal-era mosque in UP’s Sambhal. Notably, the survey was ordered by the court in response to a petition that claimed the mosque was built on the ruins of an ancient temple.

Earlier on Monday, the Uttar Pradesh Congress called off its planned march to violence-hit Sambhal following a standoff with police outside the party office in Lucknow. Uttar Pradesh Congress Chief Ajay Rai said that the march was postponed after authorities cited restrictions on entry of outsiders in Sambhal until December 10.