Finance Minister Nirmala Sitharaman Urges Banks to Focus on Core Banking, Announces Banking Rule Amendments

Finance Minister Nirmala Sitharaman has urged banks to pay special attention to core banking. Addressing the meeting of the Central Board of Directors of the Reserve Bank in New Delhi today, the Finance Minister asked the banks to give priority to key functions related to deposits and borrowings. Reserve Bank Governor Shaktikanta Das, who was present in the meeting, said that the bank is free to decide on interest rates. He said that interest rates on deposits and borrowings remain regulated.

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The Finance Minister said that the government is bringing banking rule amendments which were long awaited. He said that the amendments include important restructuring amendments related to the cooperative banking sector. He emphasized that the introduction of nomination provisions is a customer-friendly move, ensuring that customers have the option to nominate individuals and nominees can easily claim their due rights. The Finance Minister said that the most important amendments also include data reporting amendments. He said that this Act has made provision for the reporting dates of banks for regulatory compliance to be made on the 15th and last day instead of the second and fourth Fridays of every month.

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This meeting took place a few days after the Union Budget for 2024-25 and the Finance Bill with some amendments by the government was passed in Parliament. Union Minister of State for Finance Pankaj Chaudhary was also present in the meeting. Union Minister of State for Finance Pankaj Chaudhary introduced the Banking Laws (Amendment) Bill 2024 in the Lok Sabha yesterday. Through this bill, there is a provision to amend the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955, Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and Banking Companies (Acquisition and Transfer of Undertakings), Act 1980.