Kelkar is also understood to have discussed the interest-rate scenario with Reserve Bank of India governor Bimal Jalan during the day. The meeting was also attended by the three other RBI deputy governors, YV Reddy, SP Talwar and Jagdish Capoor. The meeting assumes significance as it comes two weeks before the credit policy.

The finance secretary also met chiefs of financial institutions. According to sources, the issue of corporate governance came up for discussion at the meeting attended by Unit Trust of India chairman P Subramanyam and all Mumbai-based institutions.

At the IBA meeting, bankers focussed on financialsupport from the Government, problems in accessing the capital market, private placement or even going in for an overseas issue.

Issues relating to Centre support in the area of empowering debt recovery tribunals greater autonomy, capital adequacy, tax administration, banking laws and corporate governance were also discussed, Kelkar said after the meet.

"Restructuring is a big issue but the IBA had put forward a range of issues for which they need the Government's direct support," Kelkar said.

Among the other issues, the finance secretary also discussed about the integration of the forex and money market, non-asset lending, information technology and Y2K preparedness.

Kelkar emphasised the need to provide special attention to housing and to take steps like training of staff to successfully implement the new gold bond scheme. "The Government will take up the issues after it gets the detailed views of the members of the association on each of the issues," Kelkar said, adding that the various banks haddifferent requirements based on their individual problems. The finance secretary said that he would meet the association periodically to asses the issues. "Next time, I will discuss with them human resource-development issues," he said.

Meanwhile, the IBA made a special presentation on corporate governance before the finance secretary. The association called for a recast of bank boards by bringing in professionals and executive directors of banks on the board. "The banks must be board-driven. What we are looking for is empowerment of bank boards," IBA secretary MN Dandekar said.

In effect, the IBA wants dilution in the role of the banking division of the finance ministry. The Indian Banks Association presentation had sought greater freedom for banks in receruitments, fixing of remuneration and freedom to engage employees on contract basis.