Lok Sabha passes State Banks (Repeal and Amendment) Bill, 2017

Lok Sabha passes State Banks (Repeal and Amendment) Bill, 2017

Question: The State Banks (Repeal and Amendment) Bill, 2017 provides for….
(a) Merger of five associate banks with the parent SBI.
(b) Merger of SBI with Bank of Baroda
(c) Merger of SBI with Reserve Bank of India
(d) None of the above.
Ans: (a)
Related facts:-

  • On August 10, 2017, the Lok Sabha passed the State Banks (Repeal and Amendment) Bill, 2017 .
  • This Bill was introduced in Lok Sabha by the Minister of Finance, Mr. Arun Jaitley, on July 21, 2017.
  • The Bill 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.
  • The Bill seeks to amend the State Bank of India Act, 1955 to remove references related to subsidiary banks.

Resource links:
http://www.prsindia.org/billtrack/the-state-banks-repeal-and-amendment-bill-2017-4830/