MUMBAI: The government may propose the introduction of the Banking Governance Bill on February 1, 2026, in the Union Budget presentation, a move aimed at enabling public sector banks (PSBs) finance large projects by themselves.
The draft legislation is expected to make PSUs more professional, competitive, and technology‑driven, as well as strengthen board composition and improve accountability, NDTV Profit reported, citing sources.
The government may also separately consider raising the foreign direct investment (FDI) limit in public sector banks above the current 20 per cent cap and narrowing their pay and talent gaps with private banks.