The Hindu Business Line : Bill soon to empower Govt to dissolve bank boards

The Government plans to table the Banking Services and Financial Institutions Law (Amendment) Bill in Parliament next week and the amendments in the Factories Act in the following week, the Minister for Information and Broadcasting, Mr Priya Ranjan Dasmunshi told reporters here on Friday.

The decision follows several rounds of consultations senior Ministers, including Mr Pranab Mukherjee and Mr P. Chidambaram, had with Left leaders.

Banking Companies and Financial Institutions Law (Amendment) Bill seeks to empower the Government to dissolve the board of public sector banks with a rider. The earlier version allowed the suspension to be for three years, which is now brought down to six months. This was among the four pending banking reform bills, which were being opposed by the Left parties and trade unions.

But the Left parties and trade unions continue to oppose another major legislation — Banking Regulation (Amendment) Bill, that seeks to remove 10 per cent voting right cap for shareholders.

The two other banking related Bills - the Payment and Settlement Systems Bill and the State Bank of India (Subsidiary Banks Laws) Amendment Bill — are to be sent to the Parliamentary standing committee.

The CPI leader and AITUC President, Mr Gurudas Dasgupta, said that this initiative has been taken so as to remove misconception that the Left parties were only creating obstructions in the functioning of the Government.

More Stories on : Public Sector Banks | Financial Policy

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