Union Cabinet of India Approved the Pension Bill

Union Cabinet of India, on 17 March 2011, approved the PFRDA (Pension Fund Regulatory and Development Authority) Bill and the State Bank of India (Subsidiary Bank Laws) Amendment Bill.
The PFRDA bill seeks to establish a statutory pension regulator and also allow up to 26 percent Foreign Direct Investment (FDI) on pension fund management companies.The objective of the State Bank of India(Subsidiary Bank Laws) Amendment Bill 2009 is to empower the government to fix the authorised capitals of SBI subsidiaries and appoint managing directors. SBI has five associate banks or subsidiaries; State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore.

State Bank of India (Subsidiary Bank Laws) Amendment Bill 2009 also has provisions for fixation of terms and office, salary and allowances of MDs of these subsidiaries  by the government.These amendmants were needed because as these powers were vested with RBI from whom the ownership of these banks was transferred to the Union government of India few years ago.

The PFRDA Bill was originally introduced in Parliament in 2005 and after that it was sent to the Standing Committee on Finance. But any political consensus could not be reached on that. If the bill is enacted, the interim regulator which is currently set up under an executive order would get legal backing and would have the power to regulate all pension funds and enforce contracts.