The government today gave green signal to the Banking Laws Amendment Bill that seeks to align the voting rights in banks in proportion with the equity holding.
Presently, the voting rights of a shareholder is limited to 1 per cent in state-owned banks and 10 per cent in private banks irrespective of the equity holding.
The Amendment Bill, which was cleared by the Union Cabinet, will now be tabled in Parliament for approval, sources said.
The amendments, once approved by Parliament, will enhance the voting power of shareholders in line with the portion of equity held by them.
Finance Minister Pranab Mukherjee in his budget speech has listed banking laws amendment legislation as one of the seven bills that government proposed to take up to pursue financial sector reforms.
