Archive · 27 Jan 2026
Corporate Banking Governance Bill for PSBs
The Ministry of Finance in India is working on a new law called the Corporate Banking Governance Bill.
This law will be introduced during the Budget session of Parliament.
The main goal is to make public sector banks (PSBs) stronger and more efficient.
The bill will focus on improving how these banks work, making it easier for businesses to use their services, and bringing their governance standards closer to those of private banks.
It will also include better rules for using technology and making banking services more accessible to everyone.
Additionally, the government is considering allowing more foreign investment in these banks to make them more competitive globally.
The Budget session will have two parts: the first from January 28 to February 13, and the second from March 9 to April 2.
The Ministry of Finance is working on a Corporate Banking Governance Bill to be introduced during the Budget session of Parliament.
The bill aims to strengthen public sector banks (PSBs) by improving ease of doing business, corporate governance, and operational efficiency.
An enhanced version of the EASE norms is expected to be incorporated, focusing on technology adoption and financial inclusion.
Changes to the board structure of PSBs are proposed to improve corporate governance and decision-making efficiency.
The government is considering increasing the foreign direct investment (FDI) limit in PSBs to 49% from the current 20%, with the government retaining a 51% stake.
- Who
- Ministry of Finance, Government of India
- What
- Corporate Banking Governance Bill
- When
- Upcoming Budget session of Parliament
- Where
- India
- Why
- To strengthen the role and functioning of public sector banks (PSBs)
- Bill Introduction
- Upcoming Budget session of Parliament
- Focus
- Strengthening public sector banks (PSBs)
- Key Objectives
- Improve ease of doing business, enhance corporate governance, and operational efficiency
- EASE Norms
- Enhanced version expected to be incorporated
- Board Structure Changes
- Intended to improve corporate governance and decision-making efficiency
- FDI Limit Proposal
- Increase from 20% to 49%, with government retaining 51% stake
- Budget Session Dates
- January 28 to February 13 and March 9 to April 2
