Lok Sabha clears Banking Amendment Bill after govt drops controversial clauses.
The Banking Amendment Bill, a major reforms legislation, on December 18, 2012 got the approval of the Lok Sabha, the lower house of Indian Parliament, after the government dropped the controversial provisions relating to allowing banks to trade in futures and keeping the sector outside the purview of Competition Commission.
“Since the bill is too important for me to pass, therefore I am bringing the Bill dropping the controversial clauses,” Finance Minister P Chidambaram said, winding up the discussion on the Banking Laws (Amendment) Bill, 2011.
The government dropped the controversial changes in the Bill in deference to the wishes of Opposition, the Minister said, adding it has accepted all major recommendations of the Standing Committee on Finance.
On the proposal to allow banks to participate in the commodity futures trading, he said, it was based on the recommendations of the Standing Committee on Food and Consumer Affairs and report of the Reserve Bank’s working group.
As regards other issues, he said, while RBI would regulate the banking sector, the Competition Commission of India (CCI) would look into competition practices in the banking sector.
The Minister also expressed the commitment of the government to infuse Rs 15,000 crore into public sector banks in the current financial year and retain their basic character.