Monsoon session of
Parliament: From banking, Nabard to SBI, here is all that is on
July 17, 2017
monsoon session of Parliament could be dominated by issues of
cow vigilantism, farmers’ protests, unrest in Kashmir and
India’s stand-off with China, it could nonetheless be a
productive one for business and financial matters.
Although the monsoon session of Parliament could be dominated
by issues of cow vigilantism, farmers’ protests, unrest in
Kashmir and India’s stand-off with China, it could nonetheless
be a productive one for business and financial matters.
Among the economic and financial-sector Bills to be tabled are
the Banking Regulation (Amendment) Bill 2017 that would replace
an Ordinance promulgated in early May, authorising the Reserve
Bank of India (RBI) to issue directions to banks to initiate
insolvency resolution process in case of loan default. A Bill
repealing the State Bank of India (Subsidiary Banks) Act, 1959,
will also be tabled; the Bill was necessitated because of merger
of five associates banks of SBI and Bharatiya Mahila Bank.
The Financial Resolution and Deposit Insurance Bill, 2017, which
would provide for the creation of a Resolution Corporation to
deal with bankruptcy in banks, insurance companies and other
financial entities, is up on the government’s priority list. The
Bill is also aimed at inculcating discipline among financial
service providers in the event of financial crises by “limiting
the use of public money to bail out distressed entities”.
Once cleared by Parliament, the Bill for financial firms will
complement the existing insolvency and bankruptcy code, which is
meant for dealing with non-financial entities. The Financial
Resolution and Deposit Insurance Bill was cleared by the Union
Cabinet on June 14.
Also on the agenda is the National Bank for Agriculture and
Rural Development (Amendment) Bill, 2017, that was introduced by
finance minister Arun Jaitley in the Lok Sabha in the budget
session. The Bill seeks to amend the Nabard 1981 with a view to
empowering the Centre to increase Nabard’s authorised capital to
Rs 30,000 crore from Rs 5,000 crore.
These apart, the monsoon session may also see amendments to the
Negotiable Instruments Act (NIA); this would ensure payees of
dishonoured cheques are able to realise the payments even as
digital transactions gain momentum.
Besides, the government intends to introduce the Banning of
Unregulated Deposit Schemes and Protection of Depositors
Interests Bill that seeks to provide a comprehensive code to ban
unregulated deposit schemes and protect interests of depositors.
The Bill stipulates that any deposit taker who promotes and
accepts deposits in an unregulated deposit scheme may be
punishable with imprisonment for a minimum term of two years,
which may be extended to 10 years, and with a fine which may
extend to twice the amount of aggregate funds collected from
subscribers, members or participants in such schemes or
arrangements. The Cabinet is likely to approve the Bill shortly.
As per the current schedule, the monsoon session will close on
August 11. The presidential election is scheduled for July 17
while the vice-presidential poll will be held on August 5.
On the table
(Amendment) Bill, 2017
Repeal of SBI
(Subsidiary Banks) Act, 1959
and Deposit Insurance Bill, 2017
Negotiable Instruments Act
This news can also be viewed at: