Banking Regulation Bill passed in Lok Sabha

New Delhi, Mar 16 (UNI) Amid a furore over the Nandigram violence, the Lok Sabha today passed without discussion a Bill giving more operational powers to the Reserve Bank of India in the conduct of monetary policy by allowing it to specify the Statutory Liquidity Ratio without any floor.

As such, the existing floor of 25 per cent has been removed, keeping intact the ceiling of 40 per cent as the guidance for the Central Bank.

The Bill, called the Banking Regulation (Amendment) Bill, 2007, repeals the ordinance promulgated by the President on January 23.

The Bill, which amends the Banking Regulation Act, 1949, also provides for laying of the draft notification before both House of Parliament for 30 days in cases of exemptions being granted to institutions, banks, and branches located in special economic zones.

Moving the Bill, Finance Minister P Chidambaram said: ''If these amendments have not been made immediately, there was a fear of adverse impact on the smooth functioning of the banking system in the present changing scenario.'' UNI