Parliament passes Banking Laws (Amendment) Bill to allow 4 nominees in bank a/c

New Delhi: Parliament Wednesday passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees, with the Rajya Sabha approving it by a voice vote.
Lok Sabha had passed The Banking Laws (Amendment) Bill in December 2024.
Another change in the bill relates to redefining of term ‘substantial interest’ of a person in a bank. The limit is sought to be enhanced to Rs 2 crore from the current Rs 5 lakh, which was fixed almost six decades ago.
The bill was passed by a voice vote in the upper house.
Replying to a debate on the bill in Rajya Sabha, Finance Minister Nirmala Sitharaman said that even though NPAs have decreased drastically, the government is committed to taking stringent action against wilful defaulters.
She said in the last five years, the Directorate of Enforcement has taken up around 112 cases related to bank fraud, including those pertaining to wilful defaulters.
Responding to issues regarding bad loans raised by opposition members during the discussion, the Finance Minister said “Write-offs do not mean waiving off loans”, and the banks will continue to make efforts to recover the funds.”