Public sector banks now safe, stable & healthy: Sitharaman

Public sector banks now safe, stable & healthy: Sitharaman 

Lok Sabha Passes Crucial Amendments To Banking Laws 

TIMES NEWS NETWORK 04.12.2024

New Delhi : Finance minister Nirmala Sitharaman on Tuesday said public sector banks are now safe, stable, healthy, and showing “exceptional” performance, as the Lok Sabha passed crucial amendments to banking laws, which among other things provides for up to four nominees in all bank accounts. The move is meant to ensure that successors of an account-holder or someone with a fixed deposit are not locked out as is often the case. Depositors can opt for either simultaneous nomination, where nominees are assigned specific percentage shares, or successive nomination, where nominees inherit in a predefined order. In addition, the Banking Laws (Amendment) Bill, 2024, also seeks to redefine “substantial interest” for directorships, which could increase to ₹2 crore instead of the current limit of ₹5 lakh.

Among the 19 amendments is the plan to transfer unclaimed dividends, shares, and bond interests to the Investor Education and Protection Fund (IEPF) for easier reclaim by rightful owners. “The proposed amendments will strengthen governance in the banking sector and enhance customer conve nience with respect to nomination and protection of investors,” Sitharaman said while moving the bill. Responding to the debate on the bill, she said the number of branches of scheduled commercial bank has increased to 1.6 lakh, at the end of S ept, compared to under 1.2 lakh in March 2014, with 3,792 branches added since Sept 2023. The bill also invited crit icism from opposition members. Samajwadi Party’s Rajeev Rai brought up the plight of borrowers facing credit issues due to poor communication from banks, while DMK’s Rani Srikumar questioned the  transparency of banking fees. Congress MP Karti Chidambaram spoke against the bill for not living up to the govt’s promise of “majestic reforms”. 

Patra’s remarks on Indira Gandhi trigger war of words in Lok Sabha 

New Delhi : BJP MP Sambit Patra’s remarks on former prime minister Indira Gandhi during the discussion on Banking Law (Amendment) Bill 2024 triggered a war of words between the treasury bench and opposition in the Lok Sabha, prompting the Speaker to urge the members to not digress from the topic. Participating in the debate on the Bill, Patra, recalling the Nagarwala scandal, said, “On May 24, 1971, Indira Gandhi called SBI’s Parliament Street branch manager and asked to release ₹60 lakhs immediately. A committee was set up that didn’t give any clearance to her. This is an iconic ‘phone banking example’.” DMK leader A Raja stood to raise his objection to the mention of the incident, saying it is a violation of Rule 94.