The Union Cabinet on Thursday gave its approval for introduction of a Banking Laws Amendment Bill 2011 in Parliament. This Bill seeks to among other things lift the 10 per cent voting rights cap in private sector banks and pave the way for the Reserve Bank of India to give some additional banking licences to private sector players. The proposed Bill will seek to amend the Banking Regulation Act, 1949, so as to remove the voting rights cap for private sector banks. The legislative intent will be to make voting rights commensurate with economic ownership. Indications are that the Banking Regulation Act, 1949, will be amended to prescribe a minimum capital of Rs 1,000 crore for every private sector bank. The current capital requirement is Rs 300 crore. Based on the feedback from a discussion paper issued in August 2010, the RBI has proposed some amendments to the Banking Regulation Act including a change in the minimum capital requirement.
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment