India Approves Law Raising Cap on Voting Rights in Private Banks

India’s cabinet approved a proposal to raise the cap on voting rights for shareholders in private banks to 26 percent from 10 percent, Information and Broadcasting Minister Ambika Soni said in New Delhi today.

The plan is part of the Banking Laws (Amendment) Bill that was first introduced in 2005 in parliament for approval and has been languishing since. A panel of lawmakers on Dec. 13 had recommended raising the limit on voting rights to 26 percent. The move may help enhance the central bank’s regulatory powers.

The proposed bill will become law after India’s parliament passes it following cabinet consent.

To contact the reporter on this story: Bibhudatta Pradhan in New Delhi at bpradhan@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net

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