Major Banking Reform: Parliament Approves Landmark Bill

The Banking Laws (Amendment) Bill 2024, introduced by Finance Minister Nirmala Sitharaman, has been approved by Parliament. This legislation aims to enhance governance, boost depositor protection, and improve bank reporting to the Reserve Bank of India. Among its key provisions, the bill extends directors' tenure in cooperative banks.

In a significant stride towards banking reform, the Parliament on Wednesday passed the Banking Laws (Amendment) Bill 2024. Union Finance Minister Nirmala Sitharaman introduced the bill, promising to overhaul regulations that govern the nation's banking sector.

The bill is designed to enhance governance standards in banks, ensure better protection for depositors and investors, and streamline reporting protocols with the Reserve Bank of India. It extends the tenure of directors, excluding chairpersons and full-time directors, in cooperative banks from eight to ten years.

Highlighting the bill's distinct nature, Sitharaman noted its impact on five different acts and the collaborative efforts of eight teams to draft the amendments. The Finance Minister also detailed recent anti-fraud initiatives, revealing significant enforcement actions and asset restitutions related to bank fraud.

(With inputs from agencies.)