All Banking & Financial Awareness December 2024 I Part - 1 I Detailed Explanation I Hindi

All Banking & Financial Awareness December 2024 I Part - 1 I Detailed Explanation I Hindi Telegram Channel Link : https://t.me/decodeindian1 The Banking Laws (Amendment) Bill, 2024 The Banking Laws (Amendment) Bill, 2024 was introduced in Lok Sabha on August 9, 2024. It amends the: (i) Reserve Bank of India (RBI) Act, 1934, (ii) Banking Regulation Act, 1949, (iii) State Bank of India Act, 1955, (iv) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and (v) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The Bill changes the definition of fortnight to the period from: (i) first day to fifteenth day of each month, or (ii) sixteenth day to the last day of each month. The Banking Regulation Act prohibits the director of a bank (except its chairman or whole-time director) to hold office for more than eight years consecutively. The Bill seeks to increase this period to 10 years for co-operative banks. The Bill extends this exemption to the director of a central co-operative bank. This exemption will apply where he is elected to the board of a state cooperative bank in which he is a member. Under the Banking Regulation Act, substantial interest in a company refers to holding shares of over five lakh rupees or 10% of the paid-up capital of the company, whichever is less. This may be held by an individual, his spouse, or minor child, either individually or collectively. The Bill amends this to increase the threshold to two crore rupees. The Bill allows the appointment of up to four nominees for these purposes. For deposits, such nominees can be appointed either successively or simultaneously while for other purposes they can be appointed successively. The Bill widens the ambit of the funds that can be transferred to the IEPF. These include: (i) shares for which dividend has not been paid or claimed for seven consecutive years, and (ii) any interest or redemption amount for bonds which is unpaid/ unclaimed for seven years. At present, the remuneration paid to the auditors of banks is fixed by the RBI in consultation with the central government. Revenue Secretary Sanjay Malhotra Appointed as New RBI Governor Sanjay Malhotra, officially assumed office as the 26th governor of the Reserve Bank of India (RBI) for a three-year term. Ajay Seth Assumes Additional Charge as Revenue Secretary The Appointment Committee of the Cabinet, headed by Prime Minister Narendra Modi, assigned the additional charge of the post of revenue secretary in the finance ministry to Economic Affairs Secretary Ajay Seth. RBI cancels registration of Nagpur-based Zavron Finance RBI has cancelled the certificate of registration of Nagpur-based Zavron Finance due to irregular lending practices. Following cancellation of the certificate of registration, Zavron Finance cannot transact the business of a non-banking financial institution (NBFI). Zavron Finance has violated RBI guidelines on code of conduct in outsourcing of financial services in its digital lending operations by outsourcing its core decision-making functions such as credit appraisal, loan disbursal, fixing of rate of interest, as well as KYC verification process.