The Parliament approval of the Banking Laws (Amendment) Bill, 2012, is expected to provide a great boost to the economy by attracting foreign investors, creating new banks, expanding the existing ones, and generating thousands of new jobs.

After Parliament approved the banking bill in December, India is now more close to fulfilling its long-anticipated commitment of opening more banks in order to achieve more financial inclusion. The approval of the bill also paved the way for consolidation of existing banks and the creation of world-size banks.

After the government's financial inclusion programs gained momentum, public sector banks once again increased their recruitment processes. There are around 85,000 vacancies in various public sector banks across India and the government has plans to fill these within a few months.

The State Bank of India (SBI) alone is expected to recruit around 20,000 staff and more than 1,200 officers during this financial year alone. Other public sector banks will be recruiting more than 20,000 clerical staff and 22,000 officers.

As per some estimates, the opening of new banks will create at least 50,000 new jobs across the country. However, analysts also say that more jobs can be created only if the government gives more preference to retail banking over corporate houses.

The Reserve Bank of India (RBI) has already issued draft guidelines for new banks and is now busy in the process of finalising the guidelines.