December 18, 2012 1:24 PM IST

Government to Remove Controversial Commodity Futures Trade Clause from Banking Bill

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Government to Remove Controversial Commodity Futures Trade Clause from Banking Bill

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.

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010.

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.

"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.

Reuters/Amit Dave/Files
A labourer works on the sign of a bank building in Ahmedabad November 26, 2010.
Copyright 2012 Thomson Reuters. All rights reserved.
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