Benares Bank Wind-Up Off, Bob Keen On Takeover

The government today reversed its earlier decision to wind up the Banares State Bank following Bank of Baroda (BoB) expressing its interest to take over the bank.

Pramod Mahajan, minister of Parliamentary affairs, communications and IT, said after the Cabinet meeting that the government has asked Reserve Bank of India (RBI) to speed up BoB's proposal to take over the ailing Banares State Bank.

In September 2001, the government had decided to wind up the bank. But, with BoB evincing interest, RBI has been asked to pursue the matter. The earlier decision to wind up the bank, however, was not communicated to RBI formally.

 

The Cabinet also decided to lift restrictions on display of the national flag by people by approving amendment to the Flag Code which will come into force by January 26.

The Cabinet approved the recommendations of the Flag Code Committee with certain modifications, Mahajan said: "With this, there would be no restriction on the display of the national flag so far as members of the public are concerned. However, display of the national flag would be subject to certain conditions primarily intended to safeguard its dignity and honour."

The minister also said, the Cabinet also decided that in due course, the Prevention of Insult to National Honour Act, 1971 would be suitably amended.

The Cabinet also approved the signing and ratification of the convention for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income between India and the United Mexican State.

Mahajan said the Cabinet has also approved the modification in the Indo-Mexican Double Taxation Avoidance Convention for making it consistent with current Mexican legislation.

The Cabinet gave its nod to amend the law making prior approval of the Centre mandatory for opening new ayurveda, siddha and unani colleges in order to curb massive proliferation of sub-standard colleges.

The approval of the Indian Medical Council (Amendment) Bill, 2001 -- which seeks to amend the Indian Medicine Central Council Act 1970 -- would ensure objectivity and uniformity in granting permission for opening of such colleges, Mahajan said.

These amendments will also make provisions for obtaining prior approval for increasing and fixing the admission capacity or for introduction of a new course besides ensuring that only those colleges which can maintain standards are allowed to impart education, the minister said.

The Cabinet also approved the proposal to permit recruitment for the posts of assistant commandants in the BSF, CRPF, ITBP and Special Security Bureau (SSB) by Union Public Service Commission through a combined examination for para-military forces.