LS passes amendment bill to improve bank governance

The bill will also provide consistency in reporting by banks to the Reserve Bank of India

- Subhash Narayan

In a bid to improve bank governance and enhance investor protection, the government on Tuesday passed an amendment bill in the Lok Sabha that brings about changes to five banking laws.

Finance minister Nirmala Sitharaman said the Banking Laws (Amendment) Bill will strengthen bank governance, provide consistency in reporting by banks to the Reserve Bank of India (RBI), ensure better protection for depositors and also for investors, improve audit quality in public sector banks, and also increase the tenure of directors other than the chairperson and full-time directors in cooperative banks.

The minister said that through the bill a total of 19 amendments were being undertaken to bring changes in the Reserve Bank of India Act, 1934 (one amendment), the Banking Regulation Act, 1949 (12 amendments), the State Bank of India Act, 1955 (2 amendments), the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (2 amendments) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1978 (2 amendments).