The Lok Sabha on Tuesday passed the Banking Laws (Amendment) Bill, 2024, through voice vote with Finance Minister Nirmala Sitharaman asserting that all public sector banks are turning profitable.

Introduced in August this year, the Bill seeks to increase the option for nominees per bank account to four, from existing one, among others.

The Bill seeks to improve governance standards and provide consistency in reporting by banks to the Reserve Bank of India. The amendments will also ensure better protection for depositors and investors and will also improve the quality of services in the public sector banks.

Replying to the debate on the Banking Laws (Amendment) Bill, 2024, Sitharaman said that between 2014 and today, the total bank branches of all scheduled commercial banks have increased by 3792 in a year to reach 1,65,501 in September 2024.

“Since 2014 we have been extremely cautious, so that banks remain stable. The intention is to keep our banks safe, stable, healthy, and after 10 years you are seeing the outcome,” she said.

The Finance Minister further said total bank branches of scheduled commercial banks have increased by 3792 in a year to reach 1655001 in September 2024.

She said out of this 85,116 branches are of public sector banks.

“Banks are being professionally run today. The metrics are healthy so they can go to the market and raise bonds, raise loans and run their business accordingly,” the Union Finance Minister said.

She further informed the Lok Sabha that no penalty has been imposed on any of the 65 crore Basic Bank Savings Account holders or 54 crore Jan Dhan account holders for not maintaining minimum balance.

Earlier, moving the Bill, 2024, for consideration and passing in Lok Sabha, the Union Finance Minister said the Banking Laws (Amendment) Bill will strengthen governance in Indian banking sector besides enhancing consumers and customer’s convenience with respect to nominations and protection of investors.

Another major provision in the bill allows a director of a central cooperative bank to serve on the board of a state cooperative bank. Currently, directors can hold positions in only one institution and not more.