Reportedly Finance minister Nirmala Sitharaman said moving the bill for consideration and passing in the Lok Sabha, the minister said a total of 19 amendments are being proposed to bring changes in the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india Act, 1934, the banking Regulation Act, 1949, the bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>state bank of india Act, 1955, the banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
Nirmala Sitharaman said “The proposed amendments will only strengthen governance in the indian banking sector besides enhancing consumers and customer’s convenience with respect to nominations and protection of investors". The bill aims to address key regulatory and operational challenges in the sector, with a focus on improving transparency and customer satisfaction. The bill also seeks to transfer unclaimed dividends, shares, and interest or redemption of bonds to the Investor education and Protection Fund (IEPF), allowing individuals to claim transfers or refunds from the fund, thus safeguarding investors’ interests.
Moreover the amendments in the banking Regulations Act would apply only to cooperative banks or that part of the cooperatives which are operating as banks. The bill proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011.
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