Banking Bill set to sail through
The minister promised to discuss the insurance Bill with the Opposition again on Saturday to iron out differences. The Bill seeks to raise the foreign investment cap from 26% to 49%. FE had earlier reported that a consensus formula being worked out in this regard could be to retain the foreign direct investment limit at 26% and allow foreign institutional investors to take up 23% on top of it.
The Banking Laws (Amendment) Bill among other things seeks to give the Reserve Bank of India the power to supersede bank boards, a precondition set by the central bank for issuing new bank licences. The passing of the Bill would also encourage domestic and foreign private investors because the voting rights of shareholders of private banks is proposed to be hiked to 26% from 10% and that in the case of nationalised banks from 1% to 10%. The proposed larger say in management is expected to spur private investment – domestic and foreign – in the Indian banking industry.
Renewed hopes that the banking Bill could be passed
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