The Banking Amendment Bill is likely to be tabled in the Lok Sabah. The bill entails removing 10 percent voting ceiling in private sector banks. Three legislations are going to be possibly amended; the Banking Regulation Act of 1949, the Banking Companies Act of 1970 and the Banking companies Act of 1980.
Why is this important?
Once the Banking Amendment Bill comes through the Reserve Bank of India (RBI) will have more purviews over new banks, which will be formed. So, the banking amendment bill or the regulation needs to be made for RBI to issue the licenses.
