Banking Laws (Amendment) Bill Approved by Parliament
The Indian Parliament approved the Banking Laws (Amendment) Bill on Wednesday, March 26, 2024. This bill introduces significant changes to banking regulations in the country.
Finance Minister Nirmala Sitharaman introduced the bill in the Lok Sabha, aiming to improve governance standards and ensure consistent reporting from banks to the Reserve Bank of India (RBI). The amendments also aim to enhance protection for depositors and investors, while improving the quality of services offered by public sector banks.
One key change proposed by the bill is the extension of the tenure for directors (excluding the chairperson and full-time directors) in cooperative banks from eight to ten years.
In her address, Finance Minister Sitharaman highlighted the unique nature of the bill, impacting five different acts and incorporating amendments across eight distinct themes. She also emphasized the government's commitment to tackling bank fraud, citing the Directorate of Enforcement's actions against 912 cases since January 29, 2025. These actions resulted in the attachment/seizure/freezing of approximately Rs 44,204 crore in proceeds of crime.
Furthermore, Sitharaman mentioned the restitution of assets worth Rs 22,276 crore to banks and victims of money laundering in eight cases. Additionally, 144 accused individuals have been arrested, and 239 prosecution complaints have been filed.
The Finance Minister also highlighted the success of the Jan Dhan Yojana, with 55 crore accounts opened, 55% of which are held by women. This initiative, according to the 2023 Global Partnership for Financial Inclusion report, has helped India achieve over 80% bank account penetration by leveraging Digital Public Infrastructure (DPI). This achievement would have taken 47 years through traditional methods.