The Cabinet also approved that suitable enabling provisions should be made in the Recruitment Rules by police forces of all UTs.
The Bill also provides repeal of 111 State Appropriation Acts enacted by Parliament between 1950 and 1976.
Sources in the Urban Development Ministry said the decision has been circulated to all Ministries and to the PMO.
In 31 other bands different users like telecom firms, broadcasters, civil aviation and space would co-exist.
The 15 MHz of spectrum that the defence ministry had agreed to swap with the telecom ministry in the 2,100 MHz frequency band will be auctioned later.
Insurance Bill has been passed by Lok Sabha during current session, but could face hurdles in Rajya Sabha.
The Cabinet also approved the signing and ratifying of the SAARC Regional Railways Agreement by India, as a member state of SAARC.
The decision is expected to cut down the number of proposals that require Cabinet approval and lead to quicker decision-making.
Jaitley has been given the additional charge of Information and Broadcasting Ministry.
Suresh Prabhu gets Railways, Manohar Parrikar Defence, others help BJP expand in poll-bound states
Prabhu has represented the Rajapur Lok Sabha constituency in Konkan four times, from 1996 to 2009.
Born on December 2, 1960 in Patna, Nadda has emerged as a very strong political figure from Himachal Pradesh
Reshuffle today: 12-15 new ministers likely, Goa release also leaks portfolio; Sena sulks again.
The Bill had been introduced in Rajya Sabha in February this year.
Between April 2000 and August 2014, construction projects, including townships and housing enlisted FDI worth $23.75 billion.