Govt considering introduction of Banking Regulation Bill
The government on Friday said it is considering a proposal to again introduce Banking Regulation Amendment Bill and State Bank of India Amendment Bill in Parliament.
New Delhi: The government on Friday said it is considering a proposal to again introduce Banking Regulation Amendment Bill and State Bank of India Amendment Bill in Parliament.
The Banking Regulation (Amendment) Bill, 2005, and the
State Bank of India (Amendment) Bill, 2006, which were
introduced by the government in the 14th Lok Sabha have
lapsed, Minister of State for Finance Namo Narain Meena told
Lok Sabha in a written reply.
"The proposal to introduce these Bills again in
Parliament is under consideration of the government," he said.
In response to another question, Meena said, consolidation
in the banking sector entails better management of risks,
economies of scale in terms of footprints, manpower and other
Indian banks of a larger size would enable them to face
competition arising from internationalisation of the economy,
Hence, it is seen as a timely response to augment
efficiency, which would lead to income generation and add to
Gross Domestic Product of the country, he added.
The minister said the government is of the view that the
initiatives for consolidation should emanate from the
management of the banks themselves with the government playing
a supportive role as the common shareholder.
While supporting merger proposals, Meena said the
government keeps in view the interests of the stakeholders and
employees of merging banks.
Meena in another reply said that minimum deposit rates
since January have declined by 1.5 per cent to 6.5 per cent as
of June 2009.
During January, the minimum deposit rate of major banks
was 8 per cent, which came down to 6.5 per cent by June, he
During the same period, maximum rate declined from 9 per
cent to 8 per cent, he added.
During 2008-09, 3,241 branches were opened by both private
and public sector banks taken together, Meena said in a
Of the total, 2,351 branches were opened by the public
sector banks, while 890 branches were opened by private sector
banks, he said.