Finance minister will move an amended Banking Laws (Amendment) Bill in Parliament today. The Bill is likely to cap shareholders’ voting rights in private banks at 26% and 10% in case of nationalised banks irrespective of their total holding.
The Bill, also seeks to empower RBI to dismiss a bank’s board and force a reconstruction of the board to protect the interests of depositors, shareholders and employees. This will pave way for the central bank to grant licenses to industrial houses to set up banks.
The other proposals in the Bill include the increasing voting rights of an entity in a besides, once legislated, the Bill will provide the RBI powers to ask for information from banks’ associate companies. The Bill will also pave the way for issuing new bank licenses to private sector entities.
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The Bill, also seeks to empower RBI to dismiss a bank’s board and force a reconstruction of the board to protect the interests of depositors, shareholders and employees. This will pave way for the central bank to grant licenses to industrial houses to set up banks.
The other proposals in the Bill include the increasing voting rights of an entity in a besides, once legislated, the Bill will provide the RBI powers to ask for information from banks’ associate companies. The Bill will also pave the way for issuing new bank licenses to private sector entities.
....more info