As expected, RS passes bill
21 Dec 2012 6:39 AM IST
The Rajya Sabha on Thursday paved the way for corporate houses to enter the banking sector by approving the banking bill, a key reform legislation pending for long. It also passed the amendments to the debt recovery laws or Sarfesi law after a reply by Finance Minister P Chidambaram on the combined discussion on the two bills.
These two Bills — Banking Laws (Amendment) Bill, 2012, and Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2012 — he said, will strengthen the financial sector and help in establishing large-sized banks, besides promoting financial inclusion. 'We need two-three world sized banks. China has three among the world's top 20. We have none. We need more banks,' argued the finance minister. 'Banks have opened 6,489 branches in 2011-12 alone, that is around 18-19 per day. We don't have the capacity to open more branch. We need banks,' added Chidambaram.
The Lok Sabha has already passed these two Bills. Chidambaram said that the amendment was not intended to give banking licences to big corporate houses alone but also to allow eligible public sector entities to enter the sector.
The Banking Bill was approved by the Lower House earlier this week after the government dropped the controversial clause concerning allowing banks to trade in commodity futures. Referring to Thursday's strike by bank unions against reforms, Chidambaram said that he could only request the bank employees to refrain from such activities.
These two Bills — Banking Laws (Amendment) Bill, 2012, and Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2012 — he said, will strengthen the financial sector and help in establishing large-sized banks, besides promoting financial inclusion. 'We need two-three world sized banks. China has three among the world's top 20. We have none. We need more banks,' argued the finance minister. 'Banks have opened 6,489 branches in 2011-12 alone, that is around 18-19 per day. We don't have the capacity to open more branch. We need banks,' added Chidambaram.
The Lok Sabha has already passed these two Bills. Chidambaram said that the amendment was not intended to give banking licences to big corporate houses alone but also to allow eligible public sector entities to enter the sector.
The Banking Bill was approved by the Lower House earlier this week after the government dropped the controversial clause concerning allowing banks to trade in commodity futures. Referring to Thursday's strike by bank unions against reforms, Chidambaram said that he could only request the bank employees to refrain from such activities.
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