Financial Services — Policy Reforms

Entry	Year	Description	Impact
Banking Laws (Amendment) Act	2012	This amendment strengthened RBI's supervisory powers by allowing it to remove managerial personnel of banks and impose penalties for non-compliance. It also enhanced the definition of 'banking' to include electronic transactions and digital banking services.	Improved banking supervision and enabled regulatory adaptation to technological changes in banking, supporting the growth of digital banking services and electronic payment systems.
Insurance Laws (Amendment) Act	2015	Increased foreign direct investment limit in insurance companies from 26% to 49%, allowed composite licenses for insurance companies, and strengthened IRDAI's regulatory powers including the ability to make regulations without government approval.	Enhanced capital availability for insurance companies, promoted competition and innovation in the sector, and improved regulatory efficiency in insurance supervision.
Payment and Settlement Systems (Amendment) Act	2019	Expanded RBI's regulatory authority over payment systems to include non-bank payment system operators and introduced provisions for consumer protection in digital payments.	Strengthened oversight of the rapidly growing digital payments ecosystem and enhanced consumer confidence in electronic payment systems, supporting India's digital economy initiatives.