Bill on RBI stake transfer on anvil
A bill seeking to replace the Ordinance enabling transfer of RBI's shares in the State Bank of India to the central government was introduced in the Lok Sabha on Thursday.
By PTI |
NEW DELHI: A bill seeking to replace the Ordinance enabling transfer of RBI's shares in the State Bank of India to the central government was introduced in the Lok Sabha on Thursday.
The statement of objects and reasons of the State Bank of India (Amendment) Bill, 2007, introduced by Finance Minister P Chidambaram, says that in February this year, the Government had approved the proposal for transfer of ownership of Reserve Bank in the SBI to the Government.
The move followed acceptance of the Narasimham Committee on Banking Reforms observation that it is inconsistent with the principles of effective supervision that the regulator is also an owner of the bank.
The transfer involves the entire equity held by RBI in SBI---over 31 crore shares comprising 59.73 per cent of the total equity shares. In the current year's budget, a sum of Rs 40,000 crore has been provided for this purpose.
In view of the large amount involved, it was decided to complete the transaction before June 30 this year and to do it, it became necessary to carry out urgently the required amendments in the SBI Act of 1955.
As both the houses of Parliament were not in session, an ordinance had to be promulgated to enable the transfer, the statement said.
The Financial Memorandum of the bill said in accordance with the provisions of the ordinance, the Government acquired the entire RBI shareholding in SBI against the total payment of over Rs 35,531 crore.
The statement of objects and reasons of the State Bank of India (Amendment) Bill, 2007, introduced by Finance Minister P Chidambaram, says that in February this year, the Government had approved the proposal for transfer of ownership of Reserve Bank in the SBI to the Government.
The move followed acceptance of the Narasimham Committee on Banking Reforms observation that it is inconsistent with the principles of effective supervision that the regulator is also an owner of the bank.
The transfer involves the entire equity held by RBI in SBI---over 31 crore shares comprising 59.73 per cent of the total equity shares. In the current year's budget, a sum of Rs 40,000 crore has been provided for this purpose.
In view of the large amount involved, it was decided to complete the transaction before June 30 this year and to do it, it became necessary to carry out urgently the required amendments in the SBI Act of 1955.
As both the houses of Parliament were not in session, an ordinance had to be promulgated to enable the transfer, the statement said.
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The Financial Memorandum of the bill said in accordance with the provisions of the ordinance, the Government acquired the entire RBI shareholding in SBI against the total payment of over Rs 35,531 crore.
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