Government will bring changes in the law, redefining the powers of the RBI nominee director on the board of State Bank of India.
The decision to bring about changes in the role of the RBI nominee on SBI's board through amendments in the State Bank of India (amendment) Bill, 2006, was taken at the meeting of the Union Cabinet on Thursday.
The government has also decided to bring about enabling amendments in the State Bank of India (subsidiary banks) Act, 1959, following transfer of ownership of the SBI from the Reserve Bank to the central Government.
"The amendments would bring the operations of the State Bank and its subsidiary banks in tune with the changed scenario and modern business practices," Information and Broadcasting Minister P R Dasmunsi told reporters on Thursday.