Parliament approves SBI Amendment Bill

Parliament approves SBI Amendment Bill

New Delhi: The Parliament on 23 August passed a bill to replace an ordinance enabling transfer of Reserve Bank’s stake in State Bank of India to the central government.

While the Lok Sabha had cleared the SBI (Amendment) Bill, 2007 on 21 August, the Rajya Sabha approved the legislation by a voice vote on 23 August. The Bill replaces the ordinance promulgated in June this year to transfer RBI’s 59.73% stake in SBI to the Centre for Rs35,531 crore.

“The decision to buy out SBI’s stake was mentioned in the Budget, but since RBI’s financial year closure was on 30 June, delay in completing the transaction would have delayed the process by a year," Minister of State for Finance P.K. Bansal said, while dismissing the opposition by a few members.

The move followed the report of Narasimham Committee on Banking Reforms that RBI being a regulator should not be an owner of any bank. The Bill will now be sent to President Pratibha Patil for her assent.