India Passes Banking Laws Bill, Criticism Mounts Over Unaddressed Systemic Issues

The Banking Laws (Amendment) Bill, 2024, introduces procedural changes but faces backlash for failing to tackle fraud, high interest rates, and rural banking challenges.

• 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.

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