Monsoon session of Parliament: From banking, Nabard to SBI, here is all that is on the agenda – Money Perception

Prime Minister Narendra Modi with NCP chief Sharad Pawar and President of National Conference Farooq Abdullah, CPI’s D Raja, parliamentary affairs ministers Ananth Kumar and MoS Mukhtar Abbas Naqvi after an all-party meeting ahead of monsoon session of Parliament, in New Delhi. (PTI)

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.