Finance Minister Nirmala Sitharaman has stressed on the need for banks to focus on ‘core banking’. She said this while addressing the media after holding a meeting with the Central Board of Directors of the Reserve Bank of India in New Delhi today. She asked banks to prioritise their vital business which is mobilising deposits and lending funds. RBI governor Shaktikanta Das, who was also present in the meeting said that banks are free to decide rates of interest as he informed that interest rates on deposits and lending are deregulated.

The Finance Minister noted that the Banking Regulations amendments which the government is bringing in were long awaited. She mentioned that the amendments include important realignments related to the cooperative banking sector. The Minister emphasised that the introduction of nomination provisions is a customer-friendly step, ensuring that customers have the choice to nominate individuals and that nominees can easily claim their rightful entitlements. The Finance Minister highlighted that one of the most significant amendments involves the reporting of data. She added that this act seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays.

The meeting was held after the Union Budget 2024-25 and days after the Lok Sabha passed the finance bill, with few amendments moved by the government in the parliament. Union Minister of State for Finance Pankaj Chaudhary was also present at the meeting.

The Banking Laws (Amendment) Bill 2024 was introduced by the Union Minister of State for Finance Pankaj Choudhary in the Lok Sabha yesterday. The bill seeks to amend the Reserve Bank of India Act 1934, the Banking Regulation Act 1949, the State Bank of India Act 1955, the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and the Banking Companies (Acquisition and Transfer of Undertaking) Act 1980.