Bill to enable banks to adopt modern practices: Cabinet

New Delhi, May 18 (UNI) The Cabinet today approved the proposed changes in the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Bill, 2005 aimed at enhancing flexibility of the Boards of Directors.

It is also expected to improve corporate governance. The Bill was introduced in the Lok Sabha on August 16, 2005 and was subsequently referred to the Standing Committee of Parliament on Finance for examination.

The amendment Bill will bring the operations of nationalised banks in tune with the changed scenario and modern business practices, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the Cabinet meeting chaired by Prime Minister Manmohan Singh.

PAYMENT BILL: The Cabinet also approved enactment of a new legislation on payment and settlement systems Bill, 2006 which seeks to provide for an explicit legal basis for payment and settlement system and their regulation.

It would also empower the RBI for such regulation of payment systems and provide a legal basis for all net settlements and to define settlement finality.

The proposed legislation would also provide for a legal basis to recognise clearing houses, legal sanction to netting of payments with receipts, finality of settlement, recognition of service providers and participants, electronic mode of payments and explicit powers of supervision over securities clearing and settlement (SCSS).

SASHASTRA SEEMA: It gave another approval to introduce the Sashastra Seema Bal Bill 2006 in Parliament. Sashastra Seema Bal battalions are presently governed under the provisions of CRPF Act and rules. The new legislation will provide SSB their own Act like those of other border guarding forces to provide for control, directions and service condition of the force personnel. This will improve discipline, control and administration of the force.

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