Banking Reform

Proposes up to 4 successive nominations by bank a/c holders

The Lok Sabha on Tuesday passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees in their accounts. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. The Bill piloted by Finance Minister Nirmala Sitharaman was approved by a voice vote. Replying to the debate on the Bill, Sitharaman said depositors will have the option of successive or simultaneous nomination facility, while locker holders will have only successive nomination. She also said that since 2014, the Government and the RBI 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," Sitharaman said. The bill proposes to increase the tenure of directors (excluding the chairman and whole-time director) in coopera

Changes to banking laws have a consumer tilt; no proposal that would allow change in ownership pattern of PSBs

The government is likely to introduce amendments to Banking Regulation Act 1949 and other laws to push banking sector reforms during the upcoming Budget session. Apart from this, amendments in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 are needed for privatisation of public sector banks, sources said. These Acts led to the nationalisation of banks in two phases and provisions of these laws have to be changed for the privatisation of banks, they said. Amendments, if approved by Parliament, would help bring down government holding in state-owned banks below 51 per cent, improve bank governance and enhance investors' protection, sources said. Parliament session beginning on July 22 would witness the Budget presentation on July 23 and conclude with the passage of the Finance Bill on August 12. It is to be noted that the government had listed amendment to these laws to be tak

India has become one of the hottest markets for deals including initial public offerings in Asia Pacific as global investors seek to tap on the South Asian nation's growth potential

Privatisation of public sector banks and strategic disinvestment of IDBI Bank on the agenda of the government for 2022

The Finance minister while presenting Budget 2021-22 earlier this year had announced the privatisation of PSBs as part of disinvestment drive

Why do we need a bad bank, owned by the banks themselves, when there are at least 28 ARCs around?

Here are the top opinion pieces of the day

A key question is how the BIC is to be funded. To start with, it may have to be a wholly-owned government entity

While deciding on policy regarding ownership of banks, it would be good to remember that banking is a commercial activity and therefore can't have zero risk

The new package should not be used to kick the can down the road

Recommendations of P J Nayak Committee could see the light of day

It could be applicable to both promoters and professionals, if allowed by the RBI

According to the new privatisation policy, announced by FM Sitharaman as part of the 'Atmanirbhar Bharat' package, the government will come up with a list of strategic sectors

Commission earned by VLEs on pancards, passport and rail ticketing stands at Rs 438 crore

Apropos the editorial, "Tip of the iceberg" (February 16), surging bad assets of banks should not be seen in isolation: the situation has arisen from the contribution of several adversaries in the domestic economy and foreign ones as well.Successive governments at the Centre since banks were nationalised are chiefly responsible for the present woes of the banking sector. Taxpayers and investors are bearing the brunt of the wrong policies of governments. Despite the banking sector's substantial role in the country's growth, it has been kept out of timely reforms.The government should try to execute sector-specific reforms to ensure that funds due to banks are released on time. The government and the banking regulator should enforce stringent measures to recover dues from wilful defaulters. These defaulters are enjoying a luxurious life at the cost of the exchequer. Despite the directives issued from time to time by the banking regulator, unscrupulous borrowers are taking advantage of lo