Friday, April 1, 2011

>The Banking Laws (Amendment) Bill, 2011

On 22 March 2011, the government tabled the banking laws (Amendment) Bill, 2011 in Lok Sabha. The bill proposes a number of amendments to the existing regulation of banking sector. The overarching theme is to allow banks more flexibility in strengthening their capital and empower the watchdog role of Reserve Bank of India (RBI).

# SOE banks to have additional tools and flexibility for raising capital

# Proposal to remove 10% restriction on voying rights

# Proposal to impose restriction on holding 5% or more in a banking company without prior approval of RBI.

# Empowering RBI's role as regulator

To read the full report: BANKING LAWS