INDIA BUSINESS WORLD - JULY 1^st - JULY 31^st - 2008

UNION GOVERNMENT HAS GIVEN ITS APPROVAL TO THE AMENDMENTS TO STATE BANK OF INDIA (AMENDMENT) BILL, 2006

The Union Cabinet has given its approval to the following proposals for : a) carrying out the amendments to the State Bank of India (Amendment) Bill, 2006 introduced in the Lok Sabha on 18th December, 2006 with a view to provide clear provision to enable Reserve Bank to prescribe ‘fit and proper’ criteria for elected directors, to replace the provisions of the existing section 19(f) relating to RBI Nominee Director, and to drop amendments proposed in Clause (i) of sub-section (2) of Section 50. b) Amending certain provisions of the State Bank of India (Subsidiary Banks) Act 1959 consequent upon the transfer of ownership of the State bank from the Reserve Bank to the Central Government. The amendments would bring the operations of the State Bank and its subsidiary Banks in tune with the changed scenario and modern business practices.