During the ongoing Parliament Winter Session, Congress MP Karti Chidambaram highlights issues with the Banking Laws (Amendment) Bill, 2024, specifically the harassment faced by individuals due to repeated KYC updates and lack of transparency in the process. He also questions the reliability of CIBIL scores and the absence of a proper redressal mechanism, highlighting the financial difficulties faced by a significant portion of the population.
On December 3, 2024, the Lok Sabha passed the Banking Laws (Amendment) Bill, which introduces important changes to the Indian banking framework. The bill allows bank account holders to nominate up to four individuals for their accounts, streamlining inheritance processes. Finance Minister Nirmala Sitharaman views this as a crucial step towards modernizing banking operations and ensuring better protection for depositors. While this legislation has faced criticism from opposition parties, it has been welcomed by the government as a progressive step towards improving banking regulations in light of evolving financial landscapes.
In a major announcement, Indian Finance Minister Nirmala Sitharaman states that public sector banks are profitable, signaling a shift from their previous loss-making position. In order to further boost this sector, PSU banks will be launching new products to aid in credit growth. Additionally, NABARD chairman asserts that cooperative banks will also undergo digitization by 2025, while RBI urges banks to reduce inoperative accounts in an effort to improve efficiency. The launch of a savings account for rural India by HDFC bank and Union Bank becoming the first major Indian bank to join PCAF for sustainability shows the crucial role banks play in the development of the country.