The Lok Sabha witnessed a heated debate on Tuesday as Opposition Members of Parliament (MPs) strongly criticised a bill aimed at banking reforms.
The bill, which is purportedly designed to improve bank guarantees and investor protection, faced fierce opposition from several quarters, with many MPs raising concerns about its underlying motives.
Trinamool Congress (TMC) MP Kalyan Banerjee led the charge, dismissing the bill as a "donkey passage towards privatisation of the Indian banking sector."
He argued that while the bill was presented as a measure to enhance the banking system, its real aim was to reduce the government's stake in public sector banks from 51 per cent to just 26 per cent.
Banerjee also expressed grave concerns about the bill's potential to undermine the public sector banks' ability to serve the needs of the common people, and he called for stronger safeguards to ensure that any changes would not compromise the interests of ordinary citizens.
Banerjee's criticism was echoed by Samajwadi Party MP Rajeev Rai, who raised issues related to the struggles faced by the common man in dealing with credit-related matters.
He pointed out that the CIBIL scores of the poor and middle-class were often affected negatively, and that the lack of proper communication from banks left borrowers in financial distress.
Rai shared his own experience of being blindsided by changes in interest rates on his home loan, which caused his liabilities to increase unexpectedly, highlighting the need for more transparency in the banking system.
The concerns over the bill were not limited to credit issues alone. Dravida Munnetra Kazhagam (DMK) MP Rani Srikumar criticised hidden banking charges, especially those related to basic services like ATM withdrawals and SMS alerts.
She also raised alarm over the vulnerability of senior citizens to cyber fraud, calling for stronger measures to protect the elderly from financial scams that were becoming increasingly prevalent.
In contrast, TDP MP D Prasada Rao praised public sector banks for their support to small businesses, stating that their success could be attributed to the BJP-TDP alliance, which he referred to as a "double-engine government."
Rao highlighted how these banks had played a vital role in empowering small enterprises and contributing to the nation's economic growth.
Shiv Sena (UBT) MP Anil Desai offered another perspective, pointing out the growing trend of people moving away from traditional banks in favour of alternative investment opportunities.
Desai’s comments reflected the changing landscape of India’s financial sector, where consumers are increasingly seeking new avenues to manage their finances.
Supriya Sule of the Nationalist Congress Party (NCP) also weighed in, proposing a more stringent approach to financial fraud. Sule suggested that individuals convicted of financial crimes should be required to compensate victims before serving prison sentences.
She emphasised that the primary focus should be on restoring the money to the investors and holding wrongdoers accountable for their actions.
Congress leader Karti Chidambaram took the opportunity to criticise the government’s approach to the banking sector, referring to the bill as a far cry from the "majestic reforms" promised in the government’s 100-day agenda.
He argued that the bill lacked substance and failed to meet the expectations of those who had hoped for meaningful change in the financial system.
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