A new bill called the Banking Laws (Amendment) Bill, 2024, was introduced in the Lok Sabha to improve how banks are run and to protect people’s money. The bill updates old banking laws to better suit today’s banking environment and protect investors.

Here’s what it suggests:

1. More Nominees: Account holders can now choose up to four people to manage their accounts, safe deposit boxes, and other bank items if something happens to them.
2. Higher Threshold for Directorship: To become a director in a bank, a person must have a higher amount of money invested going up from Rs 5 lakh to Rs 2 crore. This rule hasn’t changed since 1968.
3. Handling Unclaimed Money: The bill allows unclaimed dividends, shares, and bond interest to be sent to a fund called the Investor Education and Protection Fund (IEPF). People can later claim their money from this fund.
4. Longer Director Terms: Directors of cooperative banks (excluding top roles) can now serve for 10 years instead of 8.
5. Cross-Bank Directorship: A director from a central cooperative bank can now also serve on a state cooperative bank’s board.
6. Better Audits and Reporting: The bill aims to improve how banks are audited and how they report to the Reserve Bank of India (RBI).