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SHRI ADHIR CHOWDHURY : Madam, our financial sector has been facing three most important challenges, namely, technological challenges, operational challenges and challenges to the people. In order to maintain our financial stability and to inject confidence in our financial system, our financial sector has been reforming over the years and to that end Narasimham Committee was constituted in the year 1991 and again in the year 1998, the second Narasimham Committee’s recommendations were accepted by the Government and they have been implemented also and one such recommendation pertains to the objects of this Bill. This has been accepted and to that end the Government has brought forward this legislation 16.02 hrs.                              (Shri Devendra Prasad Yadav in the Chair)             The conduct of financial regulation and supervision by the Reserve Bank of India is directed to the end of ensuring financial stability. Our banking system has been progressively aligned with the regulatory framework of international practices. We have taken steps to implement Basel II norms which are being carried forward through the capital adequacy assessment process. Over the years, the Reserve Bank of India has been vested with the regulatory and supervisory authority over commercial banks, urban development banks, non-banking financial institutions and other financial institutions. But the Government thinks it prudent, in pursuance of the second Narasimham Committee’s recommendations, that the juxtaposition of the twin functions does not behove the Reserve Bank of India and therefore we have separated the functions. Already, as per the recommendations of the Narasimham Committee the Recruitment Board system has been abolished, VRS has been implemented and managerial autonomy has also been announced.

            Also, let me mention lastly that rural economy is really becoming very, very big and the SBI has maximum number of banks in rural India and those banks will also be able to give better loans, more facilities and more, what is called, the anywhere banking service from the banks.

 

MR. CHAIRMAN (SHRI DEVENDRA PRASAD YADAV): Now, Shri Braja Kishore Tripathy. You will be the last speaker.

SHRI BRAJA KISHORE TRIPATHY (PURI): Mr. Chairman, Sir, we are discussing the State Bank of India (Amendment) Bill, 2007. Although this seems to be a very simple legislation, it has far reaching implication and impact on the rural and agrarian economy of our country.