LOK SABHA GIVES NOD TO BANKING AMENDMENT BILL
- The Bill will strengthen the sector regulator Reserve Bank of India (RBI)
- Nationalized banks can raise capital through rights and bonus issues.
- The Reserve Bank of India (RBI) will have the powers to supersede bank board's & inspect the books of associate enterprises or banks
- Voting rights in private banks in line with shareholding but maximum of 26%
- Voting rights in state - run banks raised to maximum of 10% from 1%
- The RBI will get oversight over acquisition of shares in banking cos; prior approval would be needed in some cases.