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Banking Reforms Bill Passed, Debate Highlights Systemic Issues in India's Financial Sector

Raghav Chadha criticizes the bill for procedural focus, raising concerns over fraud, high loan rates, and rural banking access as public trust declines.

Raghav Chadha voices common man’s frustrations, calls out fraud
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Overview

  • The Banking Laws (Amendment) Bill, 2024, has been passed by both houses of India's Parliament, but critics argue it fails to address systemic banking issues.
  • Raghav Chadha highlighted public distrust in banks due to rising fraud cases, with over 36,000 incidents reported in 2024, and inadequate cybersecurity measures.
  • High loan interest rates, ranging from 8.5% to 13%, are making housing and education unaffordable, pushing many into debt before they start earning.
  • The closure of over 3,000 rural bank branches in 2022-23 has exacerbated financial access challenges for rural populations, forcing long travel for basic services.
  • Union Finance Minister Nirmala Sitharaman responded to Chadha's concerns with humor, but no additional government measures to address these issues have been announced.