The Reserve Bank and the centre are looking into the recommendations of a RBI-appointed committee and the Narasimham panel, sources said.

Although the RBI-appointed panel's recommendations were ready earlier this year, sources said its suggestions were not taken up as the Narasimham committee report was still not released.

The Reserve Bank had, in April 1997, set up a committee comprising senior central bank, State Bank and Bank of Baroda officials to review the provisions of three acts--the SBI Act, 1955; SBI Subsidiary Banks Act, 1959; and the Nationalised Banks (Banking Companies Acquisition and Transfer of Undertakings) Act, 1970.

The Reserve Bank had mandated its own committee to identify the sections that needed an amendment to ensure commonality and elimination of redundancy. TheNarasimham committee, too, had made several recommendations that called for changes in the legal framework.

The Narasimham committee has recommended a comprehensive act that will govern the working of commercial banks, financial institutions and non-banking financial intermediaries.

Separate statues, it said, should not exist for governing different financial intermediaries when there is a growing convergence in their functions.

State Bank chairman MS Verma recently told the bank's annual general meeting that the SBI Act ought to be amended. The Law of Evidence, the Transfer of Property Act, the Sick Industrial Companies Act, the Banking Regulation Act and the Reserve Bank of India Act are examples of legislations that needed redrafting, he said. The evolution of legal framework has not kept pace with changing commercial practices and financial reforms, he said."There are several pieces of legislations affecting bankers, which have become outdated in today's context. A related issue is the question ofinstitution-specific regulation. It is suggested in certain quarters that in view of the multifarious activities conducted by modern banks, a function-specific regulation would be more suitable form of regulation," he said.