An Analysis Of The Banking Laws (Amendment) Bill, 2021

G. Tejaswini, BBA LLB (Hons), Saveetha School of Law, Saveetha Institute of Medical and Technical Sciences (SIMATS), Chennai

Jayasree Mariappan, BBA LLB (Hons), Saveetha School of Law, Saveetha Institute of Medical and Technical Sciences (SIMATS), Chennai

This article aims at knowing the aspects of the banking laws amendment bill 2021. This article analyses the advantages and disadvantages of passing this bill and whether the bill is beneficial to the public or not.

HISTORY OF BANKS:

Banking in India forms the base for the economic development of the country. Major changes in the banking system and management have been seen over the years with the advancement in technology, considering the needs of people.

The banking sector development can be divided into three phases:

Phase I: The Early Phase which lasted from 1770 to 1969 Phase II: The Nationalisation Phase which lasted from 1969 to 1991 Phase III: The Liberalisation or the Banking Sector Reforms Phase which began in 1991 and continues to flourish till date

Pre Independence Period (1786-1947)

The first bank of India was the “Bank of Hindustan”, established in 1770 and located in the then Indian capital, Calcutta. However, this bank failed to work and ceased operations in 1832. During the Pre Independence period over 600 banks had been registered in the country, but only a few managed to survive.