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.

S Jaishankar, External Affairs Minister on Tuesday stated that bilateral relations between India and China were on the course of some improvement after the Successful disengagement agreement along the Line of Actual Control (LAC) in eastern Ladakh.

Speaking in the Lok Sabha on India-China ties and the border truce reached in October, S Jaishankar said that India-China ties have been abnormal since 2020 when peace and tranquillity in the border areas were disturbed as a result of Chinese actions. He added that the recent developments that reflect our continuous diplomatic engagement since then have set our ties in the direction of some improvement.

The External Affairs Minister also reiterated that India remains committed to engaging with China to arrive at a fair, mutually acceptable framework for boundary settlement. His remarks come nearly two months after India and China announced the major border breakthrough to resume patrolling along the LAC, effectively ending the longstanding standoff that erupted after the 2020 Galwan Valley clash.

Jaishankar in his address also said that in the months following the 2020 Galwan Valley clash, they were focusing on a situation that had not only seen fatalities for the first time in 45 years but also a turn of events serious enough for heavy weaponry to be deployed in close proximity to the LAC.

He mentioned that while a determined counter-deployment of adequate capability was the government’s immediate response, there was also the imperative of a diplomatic effort to defuse these heightened tensions and restore peace and tranquillity.

The External Affair Minister went on to list a series of agreements reached in the past between India and China, including those signed in 1991, 1993, 1996, 2003, 2005, 2012 and the last one in 2013 to reach an understanding on border defence cooperation.

He added that the purpose of his recalling these agreements is to emphasize the elaborate nature of our shared efforts to ensure peace and tranquillity and to highlight the seriousness of what its unprecedented disruption in 2020 implied for our overall relationship.

Notably, the current agreement pertains to patrolling in the Depsang and Demchok areas. Previously, the militaries of the two countries had pulled back from four of six friction points in eastern Ladakh, including the Galwan Valley, after the clash.

The Indian and Chinese armies in November completed one round of patrolling in Demchok and Depsang and also agreed to carry out one coordinated patrol every week in the areas where tensions have persisted.

In order to maintain ongoing stability, talks will continue at the local commanders level, involving brigadiers and officers of similar ranks. Earlier on October 31, Indian and Chinese troops engaged in the Customary exchange of sweets on the occasion of Diwali.

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.