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Date: 26-Nov-2024 Category: Extra Ordinary State: Union Government Country: India

Exemption from Section 19 2 of the BR Act 1949 CANARA BANK

Issued by Ministry of Finance · Department of Financial Services

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Executive Summary & Key Takeaways

What it means

  • This gazette notification, issued by the Ministry of Finance, grants Canara Bank an exemption from a specific provision of the Banking Regulation Act, 1949.
  • Specifically, Canara Bank is allowed to hold more than 30% of the paid-up share capital in Canara Robeco Asset Management Company Limited and Canara HSBC Life Insurance Company Limited.
  • This exemption is valid until October 31, 2029, or until it is revoked, whichever comes first.

Key Changes

  • The Central Government, on the recommendation of the Reserve Bank of India, has issued this notification.
  • It exempts Canara Bank from Section 19(2) of the Banking Regulation Act, 1949.
  • This exemption allows Canara Bank to hold more than 30% of the paid-up share capital in two specific companies: Canara Robeco Asset Management Company Limited and Canara HSBC Life Insurance Company Limited.
  • The exemption is valid until October 31, 2029, or until it is revoked, whichever is earlier.
  • The notification is effective from the date of its publication in the official gazette, which is November 26, 2024.

Impact Analysis

Impact on Canara Bank

  • The bank does not have to divest its stake in these companies to comply with the 30% limit, until the exemption expires or is revoked.

Impact on Canara Robeco Asset Management Company Limited and Canara HSBC Life Insurance Company Limited

  • This may provide stability and confidence to these companies.

Impact on Other Banks

  • However, they may take note of this exemption as a precedent for potential future exemptions.

Suggested Action Items

  • Canara Bank should assess the long-term strategy regarding its shareholdings in Canara Robeco Asset Management Company Limited and Canara HSBC Life Insurance Company Limited, considering the exemption period.

Key Entities Referenced

Ministry of Finance: The government body that issued the notification. Reserve Bank of India: The central bank of India that recommended this exemption. Canara Bank: The bank that is the beneficiary of this exemption. Canara Robeco Asset Management Company Limited: One of the companies in which Canara Bank is allowed to hold more than 30% stake. Canara HSBC Life Insurance Company Limited: The second company in which Canara Bank is allowed to hold more than 30% stake. Banking Regulation Act, 1949: The Act that contains the provision from which Canara Bank is exempted.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-26112024-258930 xxxGIDHxxx CG-DLxx-xEG-I2D6E1x1x2x0 24-258930 असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 4677] नई दिल्ली, मगं लिार, निम्ब र 26, 2024/अग्रहायण 5, 1946 No. 4677] NEW DELHI, TUESDAY, NOVEMBER 26, 2024/AGRAHAYANA 5, 1946 जित्त मत्रं ालय (जित्तीय सेिा जिभाग) अजधसचू ना नई दिल्ली, 26 निम्बर, 2024 का.आ. 5067(अ).—बैंककारी जिजनयमन अजधजनयम, 1949 (1949 का 10) की धारा 53 की उप-धारा (1) द्वारा प्रित्त िजियों का प्रयोग करते हुए, केन्द्रीय सरकार, भारतीय ररििव बैंक की अनुिंसा पर, एतद्द्वारा यह घोषणा करती ह ै दक उि अजधजनयम की धारा 19 की उपधारा (2) के उपबधं केनरा बैंक पर लाग ू नहीं होंग,े िहां तक इसका संबंध बैंक द्वारा 31 अिूबर, 2029 तक या इसके प्रजतसंहरण तक, िो भी पहले हो, (i) केनरा रोबेको असैट मैनेिमेंट कंपनी जलजमटेड और (ii) केनरा एसएसबीसी लाइफ इंश्योरेंस कंपनी जलजमटेड की चुकता पूंिी के तीस प्रजतित स े अजधक राजि के िेयरों को धाररत करने स ेह।ै 2. यह अजधसूचना रािपत्र में अजधसूजचत दकए िाने की तारीख से प्रिृत्त होगी। [फा. स.ं 7/11/2022-बीओए-I] समीर िुक्ला, संयुि सजचि 7623 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 26th November, 2024 S.O. 5067(E).—In exercise of the powers conferred by sub-section (1) of section 53 of the Banking Regulation Act, 1949 (10 of 1949), the Central Government, on the recommendation of the Reserve Bank of India, hereby declare that the provisions of sub-section (2) of section 19 of the said Act, shall not apply to Canara Bank, in so far as they relate to its holding shares of an amount exceeding thirty per cent. of the paid-up share capital of (i) Canara Robeco Asset Management Company Limited and (ii) Canara HSBC Life Insurance Company Limited till the 31st October, 2029 or its revocation, whichever is earlier. 2. This notification shall come into force on the date of its publication in the Official Gazette. [F. No. 7/11/2022-BOA.I] SAMEER SHUKLA, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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