Opposition Criticizes Banking Reform Bill: A Step Towards Privatization?

Opposition members in the Lok Sabha criticized a banking reform bill, arguing it aims to privatize the Indian banking sector by reducing government holdings. They cited cybersecurity, hidden charges, credit issues, and the shift to alternative investments as major concerns. The bill's effectiveness in financial reform is questioned.

In a heated debate on Tuesday, opposition members of the Lok Sabha voiced strong objections to a proposed banking reform bill, which they claimed paves the way for the privatization of Indian banks. TMC MP Kalyan Banerjee termed the bill a 'donkey passage towards privatisation,' accusing it of primarily aiming to slash the government's stake in public sector banks from 51 to 26 percent.

Banerjee pointed out the critical need for robust IT systems to combat cyber threats and ensure data privacy, emphasizing that advanced fraud detection and regulatory compliance measures are crucial for maintaining public trust. Meanwhile, Samajwadi Party MP Rajeev Rai flagged the credit woes faced by ordinary citizens, criticizing banks for poor communication and unexpected changes in interest rates that exacerbate financial hardships.

Related concerns were raised by DMK's Rani Srikumar about hidden fees for basic services and vulnerabilities to cyber fraud faced by senior citizens. Contrasting views were presented by TDP MP D Prasada Rao, who lauded public banks' support for small businesses. On accountability in financial frauds, NCP's Supriya Sule advocated for victim compensation before imprisonment of offenders. Congress MP Karti Chidambaram accused the bill of lacking the promised 'majestic reforms.'

(With inputs from agencies.)