Overview

• Parliament approved the Banking Laws (Amendment) Bill, 2024, allowing bank account holders to nominate up to four individuals.
• Rajya Sabha MP Raghav Chadha criticized the bill as a procedural reform that overlooks key systemic issues in India's banking sector.
• Chadha highlighted concerns over rising fraud, high loan interest rates, and hidden banking charges, which he claims are eroding public trust.
• The closure of over 3,000 rural bank branches in recent years has disproportionately impacted rural populations, forcing them to travel long distances for basic services.
• Recommendations for reform include capping interest rates, enhancing cybersecurity, regulating hidden charges, and improving financial literacy to restore public confidence.