Govt reaches agreement with opposition on banking Bill: FinMin Chidambaram

New Delhi: Finance Minister P Chidambaram Wednesday said that the government has reached an agreement with the opposition for passing the much-awaited banking amendment Bill in Parliament.

The Reserve Bank of India has indicated that it will not come out with the final guidelines on new bank license unless the Bill, which empowers the central bank to supersede the boards of banks, turns into a law.

The opposition parties had demanded that the Bill be referred again to the Standing Committee on Finance, mainly in protest against a clause in the Bill that will permit banks to participate in commodity futures trading.

The Bill also seeks to give additional powers to the RBI to inspect books of financial conglomerates and vet mergers and acquisitions in the banking sector.

The Bill also proposes to hike cap on single investor’s voting rights in a private bank to 26% from 10% now.

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