Banking Sector Reforms — Policy Reforms

Entry	Year	Description	Impact
Banking Regulation Act Amendment 2020	2020	Extended RBI's regulatory powers to cooperative banks, bringing them under the central bank's supervision. The amendment provided RBI with powers similar to those exercised over commercial banks, including licensing, regulation, and supervision of cooperative banks.	Strengthened the regulatory framework for cooperative banks, improved depositor protection, and enhanced systemic stability by bringing all deposit-taking institutions under unified supervision.
Banking Regulation Act Amendment 2017	2017	Empowered RBI to direct banks to initiate insolvency resolution process under the Insolvency and Bankruptcy Code. The amendment inserted Section 35AA, giving RBI authority to issue directions for resolution of stressed assets.	Facilitated faster resolution of NPAs, strengthened RBI's supervisory powers, and improved the effectiveness of the insolvency framework in addressing banking sector stress.
SARFAESI Act Amendment 2016	2016	Expanded the scope of SARFAESI Act to include asset reconstruction companies and reduced the minimum threshold for invoking SARFAESI provisions from Rs. 1 lakh to Rs. 50,000 for certain cases.	Enhanced debt recovery mechanisms, improved access to SARFAESI provisions for smaller loans, and strengthened the asset reconstruction ecosystem.