Banking Legal guidelines (Modification) Invoice, 2024, defined: The Lok Sabha on December 3 debated the Banking Laws (Amendment) Bill, 2024, spearheaded by Union Finance Minister Nirmala Sitharaman, as per a PTI report.
Notably, Sitharaman proposed the invoice in Parliament on December 3 and was accredited for presentation by a voice vote. The finance minister stated that since 2014, the federal government and the Reserve Financial institution of India (RBI) have been “extraordinarily cautious” in order that banks stay steady. “The intention is to maintain our banks protected, steady, and wholesome, and after 10 years, you might be seeing the result,” she said.
In the course of the debate on the invoice, it confronted criticism from the opposition for being a “step in the direction of privatisation”, the report added.
We look at the particulars of this modification, which was proposed throughout this month’s Parliament’s Winter Session.
Opposition Fiercely Vital, Says ‘Passage In direction of Privatisation’
Transferring the invoice for consideration and passing, Sitharaman stated that it might “strengthen governance within the banking sector and improve buyer comfort with respect to nomination and safety of traders”, however opposition MPs have been unconvinced.
Among the many vocal vital feedback got here from TMC MP Kalyan Banerjee, who described the modification as a “donkey passage in the direction of privatisation of the Indian banking sector.” He additionally raised issues over cybersecurity, the necessity for strong IT and fraud detection methods, and “strict adherence to knowledge privateness rules.”
“Whereas the invoice ostensibly seeks to enhance financial institution ensures and investor safety, its actual intent is to cut back the federal government’s minimum holding in public sector banks from 51 to 26 per cent,” Banerjee argued.
Banerjee’s issues about cybersecurity have been echoed by Congress MP Karti Chidambaram, who demanded a authorities response on what measures are being taken to deal with rising cyber frauds.
Chidambaram additionally raised the difficulty of the “tyranny of KYC”, saying that it must be stopped as a number of calls as folks obtain a number of calls from banks for KYC updating yearly, regardless of no change in particulars. “With the intention to make life simpler for the client, they need to simplify and mandate that if there is no such thing as a change (in KYC), there is no such thing as a purpose to replace your KYC a number of occasions in a 12 months,” he stated.
