The change in reporting requirements for banks is the most significant aspect of the banking law amendments introduced in Parliament on Friday as it will ensure that the data used to frame policies is closer to reality, Finance Minister Nirmala Sitharaman asserted on Saturday.

The introduction of provisions in the Banking Regulation (BR) Act for simultaneous and successive nominations by account holders and depositors, Ms. Sitharaman said, was a customer-friendly step as it was important for customers to have a choice in nominations. This will also ensure that nominees do not face difficulties later in claiming what is rightfully theirs, she noted.

Stressing that many of the proposed changes in the banking law were long-awaited, the Finance Minister said that the amendments to the Banking Regulation Act and Section 42 of the Reserve Bank of India (RBI) Act to revise the reporting dates for submission of statutory reports by banks to the regulator, was most critical shift.

“Instead of going by the old way of [reporting by] the last Friday [of a month] and things like that, we have gone in for the calendar fortnight – the 15th and 30th of every month. So corrections, if any, can happen, and the updations are predictable, and eventually, at the end of the year, you are not doing lumpsum changes… little changes done every month, every fortnight, can be assimilated,” she said. “Therefore, I think that is the most important of all the amendments. So that data which is the driver of policy making, is much more closer to reality,” the FM underlined.

Weighing in on the proposed changes, financial sector experts said the amendments could help banks and regulators become more agile in responding to evolving economic demands.

“Uniform reporting standards will facilitate faster response to sectoral risks and economic challenges from regulators and investors,” said Gayathri Parthasarathy, partner and leader of financial services at PwC India.