|RBI wants State Bank of Sikkim under Banking Act|
GANGTOK, Nov 27 - The Reserve Bank of India has suggested to the Sikkim Government for bringing the State Bank of Sikkim (SBS) under Banking Regulation Act 1949.
As a State Government undertaking, the SBS is the treasury of the Sikkim Government and is outside the purview of the Banking Regulation Act and RBI. The SBS was established in 1968 under the Proclamation of Chogyal (earstwhile King of Sikkim) which is protected by Article 371 F of the Indian Constitution.
Meanwhile, opposition Sikkim Krantikari Morcha ( SKM) has alleged that mismanagement by the governemnt has resulted in the RBI making the suggestion to the State.
RBI Chief General Manager P Vijaya Kumar has written to the Sikkim Chief Secretary suggesting that the SBS is brought under the 1949 Act before March 31, 2017 to avoid any inconvenience in future.