Lok Sabha Passes Bill Allowing Up to Four Bank Account Nominees

The Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, enabling bank account holders to nominate up to four individuals as successors, either simultaneously or successively, with specified shares. This measure is aimed at streamlining the inheritance process and minimizing unclaimed deposits after an account holder’s demise.

Union Finance Minister Nirmala Sitharaman stated that the amendments would enhance governance in the banking sector while improving customer convenience. The bill also introduces regulatory reforms, including deadlines for statutory reports and streamlined auditing processes for banks, particularly multi-state cooperatives offering banking services. These changes are expected to bolster the Indian banking system’s efficiency and protect consumer interests, strengthening the sector’s overall governance framework.