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◆ What is Banking Laws (Amendment) Bill ?
● The Banking Laws (Amendment) Bill is a key bill aimed to bring reforms in India’s banking sector. It will facilitate the privatisation of two public sector banks (PSBs) as part of an ambitious disinvestment plan. The bill is expected to lower the minimum government holding in the PSBs from 51% to 26%.
◆ About the bill :
●As per the intent of the bill, amendments will be made in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980 and the Banking Regulation Act, 1949. Reportedly, the government think-tank NITI Aayog has proposed the names of Indian Overseas Bank and Central Bank of India for privatisation in the latest round.
◆ Timeline of events :
● Union Finance Minister Nirmala Sitharaman announced the privatisation of public sector banks during the presentation of Union Budget 2021-22. It was part of the government’s planned disinvestment drive to earn Rs 1.75 lakh crore. The government was expected to introduce the bill in the previous two sessions of the parliament but the plan was deferred amid countrywide protests by bank unions.
◆ Criticism of the bill :
● Bank unions across the country have, time and again, objected to the privatisation of public sector banks in India. Bank unions and critics of the bill say that it would lead to social injustice and denial of reservation to the backward classes of the society. Bank unions further say that it would be an undue advantage to the private players.
◆ India’s privatisation record :
● In the 2019-20 Budget, India’s disinvestment revenue was estimated at Rs 1.05 lakh crore but was later reduced drastically to Rs 65,000 crore. Eventually, the actual disinvestment amount was Rs 50,298.64 crore during that fiscal.
Similarly, the government projected disinvestment receipts at Rs 2.10 lakh crore in Budget 2020-21, but managed to collect under Rs 20,000 crore through disinvestment.
● The Banking Laws (Amendment) Bill is a key bill aimed to bring reforms in India’s banking sector. It will facilitate the privatisation of two public sector banks (PSBs) as part of an ambitious disinvestment plan. The bill is expected to lower the minimum government holding in the PSBs from 51% to 26%.
◆ About the bill :
●As per the intent of the bill, amendments will be made in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980 and the Banking Regulation Act, 1949. Reportedly, the government think-tank NITI Aayog has proposed the names of Indian Overseas Bank and Central Bank of India for privatisation in the latest round.
◆ Timeline of events :
● Union Finance Minister Nirmala Sitharaman announced the privatisation of public sector banks during the presentation of Union Budget 2021-22. It was part of the government’s planned disinvestment drive to earn Rs 1.75 lakh crore. The government was expected to introduce the bill in the previous two sessions of the parliament but the plan was deferred amid countrywide protests by bank unions.
◆ Criticism of the bill :
● Bank unions across the country have, time and again, objected to the privatisation of public sector banks in India. Bank unions and critics of the bill say that it would lead to social injustice and denial of reservation to the backward classes of the society. Bank unions further say that it would be an undue advantage to the private players.
◆ India’s privatisation record :
● In the 2019-20 Budget, India’s disinvestment revenue was estimated at Rs 1.05 lakh crore but was later reduced drastically to Rs 65,000 crore. Eventually, the actual disinvestment amount was Rs 50,298.64 crore during that fiscal.
Similarly, the government projected disinvestment receipts at Rs 2.10 lakh crore in Budget 2020-21, but managed to collect under Rs 20,000 crore through disinvestment.
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Exclusive from Sources about the Banking Laws Amendment Bill 2024:
Key Provisions:
- Account holders can now designate up to 4 nominees instead of just one.
- Reporting dates will be changed to the 15th and 30th of each month instead of every second and fourth Friday.
- The new reporting dates will apply to all institutions regulated by the Reserve Bank.
- Provision to increase the limit of a director's substantial interest.
- The threshold for substantial interest will be raised from 5 lakh INR to 2 crore INR or 10% equity shares.
- Provision to extend the tenure of directors in cooperative banks to 10 years.
Key Provisions:
- Account holders can now designate up to 4 nominees instead of just one.
- Reporting dates will be changed to the 15th and 30th of each month instead of every second and fourth Friday.
- The new reporting dates will apply to all institutions regulated by the Reserve Bank.
- Provision to increase the limit of a director's substantial interest.
- The threshold for substantial interest will be raised from 5 lakh INR to 2 crore INR or 10% equity shares.
- Provision to extend the tenure of directors in cooperative banks to 10 years.
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This is the most important chart in the world today. ( Chart shared on friday night to my investors )
It's the chart of the Japanese Yen vs the USD.
Why is it so important?
1. For 30 years Japan has 0% interest on their currency.
2. As a result for 30 years investor borrowed YEN at no cost and invested it globally. They invested in T-Bills abroad and a basket of risk assets including the Nasdaq.
3. For the first time in many year the BOJ increased interest rates this week to 0.25%. This was almost unprecedented.
4. As a result of the increased interest rates and the signal to the market, investors are now concerned that the money they borrowed for free is no longer free and therefore they are unwinding their trades and sending the funds back to Japan.
5. The estimated quantum of this trade is over $4 Trillion.
The only question that remains is how aggresive they will be but for now YOU MUST KEEP YOUR EYES ON THIS CHART !
If it keeps strengthening risk assets are going to get murdered.
It's the chart of the Japanese Yen vs the USD.
Why is it so important?
1. For 30 years Japan has 0% interest on their currency.
2. As a result for 30 years investor borrowed YEN at no cost and invested it globally. They invested in T-Bills abroad and a basket of risk assets including the Nasdaq.
3. For the first time in many year the BOJ increased interest rates this week to 0.25%. This was almost unprecedented.
4. As a result of the increased interest rates and the signal to the market, investors are now concerned that the money they borrowed for free is no longer free and therefore they are unwinding their trades and sending the funds back to Japan.
5. The estimated quantum of this trade is over $4 Trillion.
The only question that remains is how aggresive they will be but for now YOU MUST KEEP YOUR EYES ON THIS CHART !
If it keeps strengthening risk assets are going to get murdered.
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Happy friendship day to all my
Traders and Investors..❤️
Traders and Investors..❤️
❤3
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Good Morning all..
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Sharing some important world indices charts marked levels are price action order blocks keep close watch when price reaches these levels again
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Dow jones L1 pullback L2 structure
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Now... everyone's favourite..
Nifty 👇
Nifty 👇
❤1👍1
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#Nifty already shared encoded price action level. Warned many times.
Nifty couldn't surpass 25195 level Mark
Now only closing below 24074 will trigger more selling else world(big people) + Indian retailers, MF and AMC'S sitting on huge pile of cash, looking to buy equities at attractive levels.
Be on cash few good share will come when right time comes.
Nifty couldn't surpass 25195 level Mark
Now only closing below 24074 will trigger more selling else world(big people) + Indian retailers, MF and AMC'S sitting on huge pile of cash, looking to buy equities at attractive levels.
Be on cash few good share will come when right time comes.
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Last but not the least...
Bnf lovers 👇
I am "not bearish on bank nifty"
Max downside I see till downside marked levels.
Watch price action when price reaches marked levels
Bnf lovers 👇
I am "not bearish on bank nifty"
Max downside I see till downside marked levels.
Watch price action when price reaches marked levels
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Keep watching marked levels.
It will help you.
It will help you.