Cabinet meeting: PSU banks merger, amendments in Companies Act approved

  • The Union Cabinet has decided to allow NRIs to invest upto 100% in Air India
  • 72 changes in the Companies Act have also been approved

Written By Nikhil Agarwal
Updated4 Mar 2020, 04:17 PM IST
Finance Minister Nirmala Sitharaman briefing media after a Cabinet meeting.
Finance Minister Nirmala Sitharaman briefing media after a Cabinet meeting.(Ramesh Pathania/Mint)

Prime Minister Narendra Modi today chaired a Cabinet meeting in which a bunch of proposals including those related to the Companies Act and merger of 10 PSU banks were discussed. Union ministers Nirmala Sitharaman and Prakash Javadekar are briefing the media about key decisions taken in the Cabinet meeting.

Cabinet Meeting Updates:

-In the Companies act, as many as 23 offences would be recategorised out of 66 compoundable offences under the Act. Besides, seven compoundable offences would be omitted: Sitharaman.

-No forbearance from any regulator that we are contemplating on: Sitharaman on bank mergers.

-Banks have no issues with merger activity. The core interest of banks and customers have been kept in mind: FM

-Banks are fully on board, they understand and are no course for the merger effective April 1 2020: FM

-Bank mergers will not affect operations of the banks: Sitharaman

-Banks have sent a scheme of amalgamation: FM

-Cabinet has approved the Companies (Second Amendment) Bill, 2019. The bill removes criminality under the Act. "This Bill furthers ease of living for law-abiding corporates and de-clogs the criminal justice system in the country," Sitharaman said.

-After amalgamation, there will be 12 PSU banks only: FM

-The law becomes a bit more humane: FM

-We are exempting companies with obligation to spend 50 lakh or less under the CSR from the requirement of having a CSR committee: Sitharaman

-We are removing the imprisonment angle and reducing the punishment: FM

-The quantum of penalty will be reduced: FM

-Union Cabinet approves 72 changes in Companies Act. Thrust is on ease of doing business: FM

-The priority is to decriminalise the Companies Act: FM

-We suggested 72 changes in 65 sections in the Companies Act which was passed in 2013: Sitharaman.

-Air India passengers will continue to get better and better services and it will also improve the business environment, said Javadekar.

-Prime Minister Narendra Modi is personally monitoring the situation in the wake of coronavirus

-India is going to start 19 new coronavirus testing labs: Javadekar

-In the last 10 months, more than 6 lakh passengers have been screened.

-Screening going on at 21 airports for coronavirus: Minister

-Earlier, NRIs were not allowed to invest more than 49% in Air India

-NRIs who are Indian nationals will get permission to invest 100% in Air India. It will pave the way for fresh investments: Javadekar.

-FDI increasing under Modi govt every year: Prakash Javadekar.

-Foreign listing of domestic companies for raising funds at cheaper rates are also likely to have been cleared by the Union Cabinet.

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First Published:4 Mar 2020, 04:17 PM IST
HomeNewsIndiaCabinet meeting: PSU banks merger, amendments in Companies Act approved

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