It seems that the government will have to go a long way getting the banking law amendment bill passed. Opposition parties retaliating to their loss on FDI issue stalled the proceedings of lower house raising doubts about its passing in the coming days. The Lok Sabha was adjourned last day after an uproar on this matter and opposition demanded that three new provisions sought, be first referred to the Standing Committee on Finance.
The opposition parties are objecting to one of provision of amendment bill related to lifting the ban on banks engaging in forward trading in commodities, which is prohibited by the banking regulation act. Currently banks are allowed to extend finance to commodity traders and to take an equity stake in commodity exchanges but they are not engaging in forward trading in commodities. While, other issue is cap on voting rights for foreign investors in private banks. The government wants to withdraw the existing 10 per cent cap but the committee wants the rights capped at 26 per cent.
Though, the Finance Minister P. Chidambaram succeeded in getting a Bill passed on debt recovery and said that the government had the prerogative to make changes after having accepted most recommendations of the committee.
New amendment to the banking laws Bill proposes several big reforms, including raising the limit on shareholders’ voting rights in private and public sector banks and granting additional supervisory powers to the Reserve Bank of India. Bill is crucial for the Government, as it would give additional power to the RBI to issue new banking licences to the private sector.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: