India plans a far-reaching overhaul of its outdated banking system to enable it to keep pace with the technological revolution sweeping the sector globally, the finance minister said Thursday. The government will introduce a series of bills in parliament in the winter session to revamp the sector, Finance Minister Palaniappan Chidambaram told a banking seminar.
"We have to carry out far-reaching banking reforms to keep pace with economic integration and the technological revolution taking place in the global banking industry," the economic reform-friendly minister said.
The measures would strengthen banks' powers to collect bad debts and oblige them to follow a 'fair practice' code" to ensure they keep client information confidential.
The changes to existing banking laws are long overdue, he said, warning that the industry's profitability is threatened by the high amount of non-performing assets. "We hope to carry out the amendments speedily," he said.