Government to Remove Controversial Commodity Futures Trade Clause from Banking Bill

December 18, 2012 1:24 PM IST

The government will drop a controversial clause from a banking bill pending in parliament that would have allowed banks to trade in commodity futures, Parliamentary Affairs Minister Kamal Nath said on Tuesday.

Opposition to the clause threatened to stall the passing of the bill, which is aimed at drawing foreign investment into the banking sector and increasing the Reserve Bank of India's (RBI) regulatory oversight in local banks.

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"We are dropping the future clause in the banking amendment bill," Nath told Reuters.

The bill could voted on in the lower house of parliament as soon as Tuesday.

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