The Lok Sabha Monday passed a bill to amend the Regional Rural Banks Act.
The Regional Rural Banks (Amendment) Bill, 2014 was moved for consideration and passage by Minister of State for Finance Jayant Sinha.
The Regional Rural Banks Act, 1976 mainly provides for the incorporation, regulation and winding up of Regional Rural Banks (RRBs).
The amendment bill states that the central government may by notification raise or reduce the limit of shareholding of the central government, state government or the sponsor bank in the regional rural banks.
In doing so, the central government may consult the state government and the sponsor bank. The central government is required to consult the concerned state government when reducing limit of shareholding of the state government in the rural bank.
The bill had been introduced by Finance Minister Arun Jaitley Dec 18.