The Lok Sabha on 10 August 2017 passed the State Banks (Repeal and Amendment) Bill, 2017.
The Bill was passed to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955, following the merger of five associates with the parent SBI.
Following the merger, the SBI has come in the list of top 50 banks globally and is ranked at the 45th position.
Key highlights of the State Banks (Repeal and Amendment) Bill, 2017
Repeal: It seeks to repeal the two Acts: (i) State Bank of India (Subsidiary Banks) Act, 1959, and (ii) State Bank of Hyderabad Act, 1956. These Acts established the State Bank of Bikaner, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, and State Bank of Hyderabad. These banks were subsidiaries of the State Bank of India (SBI).
This is consequent to the Union Cabinet granting its approval in February 2017, which allowed the SBI to acquire these subsidiaries.
Amendments to the SBI Act, 1955: The Bill seeks to amend the State Bank of India Act, 1955 to remove references related to subsidiary banks. These references include: (i) the definition of a subsidiary bank in the 1955 Act, and (ii) powers of SBI to act as an agent of the RBI for a subsidiary bank.
Who: Lok Sabha
When: 10 August 2017
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