Banking Bill - Major Highlights

Major Highlights

ü The new law will give voting rights to shareholders . Presently irrespective of shareholding no one can have voting right in PSU Bank of more than 1% and in Private Bank 10% . This voting right will get increased to 10% from 1% and 26% from 10%

ü Will allow RBI to frame guidelines for New Banks ( Private sector Company like Tata , Birla , L&T get one step closer for getting Bank license )

ü More power to Reserve Bank of India to control Banks  

ü RBI can call for information from the associate Company of Banks

ü RBI can supersede the Board of Directors of any Bank ( max for 12 Months )