BackParliament may take up banking Bill
Parliament may take up banking Bill
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New Delhi: The government has listed the much awaited Banking Laws (amendment) Bill, which seeks to strengthen the regulatory powers of the Reserve Bank of India, for consideration and passage on Wednesday in the Lok Sabha.
The Bill, which was first introduced in the Lok Sabha in 2005 but lapsed when the 14th Lok Sabha was dissolved in 2009, aims to address the capital raising capacity of banks.
Finance minister P. Chidambaram is expected to move the Bill to amend the Banking Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
“The Bill proposes to make the following changes in order to help banking companies raise capital for expansion of the banking business," said a note on the PRS Legislative Research website.
“It removes the ceiling of 3,000 crore on the amount of authorized capital nationalized banks must hold. Approval to increase or decrease the authorized capital has to be taken from the central government and the RBI," it added.
The Bill also proposes changes regarding the voting rights of the shareholders of banks.
If passed, it will allow an increase in voting rights in private banks to 26% from 10%. It will also pave the way for RBI to issue licences to new private banks.
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