The Centre will take up for debate The Banking Laws (Amendment) Bill in the winter session of Parliament starting November 25.

The bill was introduced in August and is pending in the Lok Sabha. It is aimed at enhancing depositor protection and customer convenience at bank.

The bill proposes changes such as allowing account holders to nominate up to four persons for their accounts and lockers.

The bill also includes provisions for simultaneous and successive nominations, a move designed to offer more flexibility and security to account holders.

One of the key provisions of the bill involve the transfer of unclaimed dividends, shares and interest or redemption of bonds to the Investor Education and Protection Fund (IEPF).

The bill seeks to amend five significant Acts: the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

These amendments are intended to improve governance standards, enhance consistency in banks' reporting to the Reserve Bank of India (RBI) and strengthen protection for both depositors and investors.

Additionally, the bill seeks to improve audit quality in public sector banks.

Another significant change proposed is the increase in the tenure of directors in co-operative banks, excluding the chairman and whole-time directors, from 8 to 10 years. This amendment aligns with the Constitution (Ninety-Seventh Amendment) Act, 2011, and would allow a director of a central co-operative Bank to serve on the board of a state co-operative bank.

The bill also proposes redefining 'substantial interest' for directorships, raising the threshold from the current ₹5 lakh, set nearly six decades ago, to ₹2 crore. This change reflects the need to update financial thresholds in line with the current economic environment.

The bill proposes to increase the freedom of banks in determining the remuneration of statutory auditors, ensuring that banks can attract and retain high-quality audit professionals.

Furthermore, it seeks to change the reporting dates for banks' regulatory compliance to the 15th and last day of every month, replacing the current system of reporting on the second and fourth Fridays.

Finance minister Nirmala Sitharaman will also likely seek approval for fresh expenditures in the first supplementary demands for grants.