Cabinet for greater flexibilty and powers to RBI
New Delhi, Mar 23 (UNI) In a move that would give greater operational flexibility and regulatory powers to the Reserve Bank of India (RBI), the cabinet today gave its aproval to carry out theamendments to the Banking Regulation (Amendment) Bill, 2005 and a Bill to this effect would be introduced in the Parliament soon.
Speaking to reporters after the Cabinet Committee on Economic Affairs (CCEA) meeting, Parliamentary Affairs Minister Priya Ranjan Dasmunsi said the Banking Regulation (Amendment) Bill, 2005 was introduced in the Lok Sabha on May 13, 2005 and thereafter was referred to the Standing Committee of Parliament on Finance for examination.
The Standing Committee of Parliament on Finance presented its report to the Lok Sabha in December, 2005 with the recommendation to carry out certain modifications in the Bill.
The present provisions in the BAnking Regulation Act, 1949 have been found t be ina dequate in the context of reforms taking place in the financial sector.
The amendments in the Banking Regulation Act, 1949 will enable RBI to lay down policy anbd issue directions to monitor them.
UNI/RT SR VC1756