NEW DELHI: The Banking Laws (Amendment) Bill, 2024, which the government tabled in parliament on Friday, proposes simultaneous and successive nominations of up to four nominees. The move is aimed at offering greater flexibility and convenience for depositors and their legal heirs, especially concerning deposits, articles in safe custody, and safety lockers.Successive nomination refers to the process where multiple nominees are listed in a particular order. If the first nominee is unavailable to claim the funds, the second nominee would be called upon, followed by the third, and so on.Additionally, the Bill proposes the transfer of unclaimed dividends, shares, and interest or redemption of bonds to the Investor Education and Protection Fund (IEPF). Individuals would then be able to claim transfers or refunds from the fund, ensuring the protection of investors’ interests.A significant amendment within the Bill seeks to increase the threshold for what constitutes a ‘substantial interest’ in shareholding from the current Rs 5 lakh, which was set in 1968, to Rs 2 crores.
Source link
