FM reaches out to BJP to seek resolution on banking bill

New Delhi: In a bid to break the deadlock over a bill to amend banking laws, Finance Minister P Chidambaram today reached out to the principal opposition BJP to discuss the issues on which it is objecting to the proposed legislation.

Chidambaram met Leader of Opposition in Lok Sabha Sushma Swaraj and later her Rajya Sabha counterpart Arun Jaitley to discuss the Banking Laws (Amendment) Bill, 2011. BJP is objecting to the inclusion of some provisions in the Bill which were not recommended by Parliament’s Standing Committee on Finance.

[caption id=“attachment_553668” align=“alignleft” width=“380”]  The Left parties have alleged that BJP and Congress seem to have struck a deal on the banking law bill. PTI[/caption]

Sources said the BJP leaders pointed out that the inclusion of forward trading under the banking laws is not acceptable to it as this would affect the small traders. “BJP’s apprehension is that prima facie forward trading being brought under the ambit of banking laws would harm the small traders,” the sources said.

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The government has reportedly included this provision as the Food Processing and Consumer Affairs Standing Committee had made this recommendation.

BJP has objections to some other provisions in the Bill

and is demanding that it be sent back to the Standing Committee on Finance to discuss in detail the ramifications of the new clauses.

The Left parties have alleged that BJP and Congress seem to have struck a deal on the banking law bill. With the two major parties sticking to their stand, the impasse is far from over, the sources said.

PTI