Parliament passes Banking Bill, clears deck for new licences
Chidambaram said that the Bills will strengthen the financial sector and help in establishing large-sized banks, besides promoting financial inclusion. The Banking Bill was approved by the Lok Sabha earlier this week after the government dropped the clause concerning allowing banks to trade in commodity futures. The new Bill allows the corporate houses to enter into the banking sector
“We need 2-3 world-sized banks. China has three among the world’s top 20. We have none. We need more banks,” Chidambaram said while replying before the Rajya Sabha.
“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,” he said. Chidambaram said 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.
Referring to today’s strike by bank unions against reforms, Chidambaram said, “I don’t know why they should go on strike. There is no longer greater public support for this (kind of) strike...I think any matter can be talked out. We are open to talks.”
... keeps Companies Bill on hold
The Companies Bill, 2011, which was passed by the Lok
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