Banking Sector Reforms — Policy Reforms

Entry	Year	Description	Impact
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969	1969	Nationalized 14 major private commercial banks, bringing a significant portion of the banking sector under government control.	Shifted banking focus from profit to social objectives, leading to massive branch expansion and directed credit to priority sectors. Laid the foundation for public sector dominance in banking.
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980	1980	Nationalized six more private sector banks with deposits over ₹200 crore.	Further consolidated government control over the banking sector, reinforcing the social banking mandate and expanding the reach of public sector banking.
Banking Regulation (Amendment) Act, 1994	1994	Introduced provisions for capital adequacy norms, asset classification, and provisioning requirements, aligning with Narasimham Committee recommendations.	Strengthened the regulatory framework, improved financial health of banks, and paved the way for entry of new private sector banks by setting prudential standards.
SARFAESI Act	2002	Empowered banks and financial institutions to recover NPAs by enforcing security interests without court intervention.	Significantly improved the legal framework for NPA recovery, reducing the time and cost involved, and strengthening banks' ability to manage asset quality.
Insolvency and Bankruptcy Code (IBC)	2016	Provided a unified, time-bound framework for resolution of insolvency and bankruptcy for companies and individuals.	Revolutionized debt recovery and resolution in India, improving creditor rights and significantly impacting banks' ability to recover dues from defaulting corporate borrowers, enhancing credit discipline.