One other proposed change pertains to redefining ‘substantial curiosity’ for directorships, which may enhance to ₹2 crore as an alternative of the present restrict of ₹5 lakh, which was mounted virtually six many years in the past.
- Additionally learn: Govt set to herald adjustments in banking legal guidelines
As per the revised checklist of enterprise of Lok Sabha, Finance Minister Nirmala Sitharaman is scheduled to introduce the Banking Legal guidelines (Modification) Invoice, 2024 later within the day.
Apart from, sources mentioned there are some adjustments with respect to cooperative banks.
As well as, the Invoice additionally seeks to offer better freedom to banks in deciding the remuneration to be paid to statutory auditors.
The Invoice additionally seeks to redefine the reporting dates for banks for regulatory compliance to the fifteenth and final day of each month as an alternative of the second and fourth Fridays.
The Invoice, which was authorized by the Union Cupboard final Friday, proposes to amend the Reserve Financial institution of India Act, 1934, the Banking Regulation Act, 1949, the State Financial institution of India Act, 1955, the Banking Corporations (Acquisition and Switch of Undertakings) Act, 1970 and the Banking Corporations (Acquisition and Switch of Undertakings) Act, 1980.
The announcement about this was made by the Finance Minister in her 2023-24 Funds speech.
“To enhance financial institution governance and improve buyers’ safety, sure amendments to the Banking Regulation Act, the Banking Corporations Act and the Reserve Financial institution of India Act are proposed,” she had mentioned.
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