Left parties okay controversial banking Bill

Left parties have given their nod for the passage of the controversial Banking Companies and Financial Institutions Law (Amendment) Bill that seeks to empower the government to dissolve the board of public sector banks with a rider.

This was among the four pending banking reform bills, which were being opposed by the Left parties and trade unions.

But the Left parties and trade unions continue to oppose another major legislation -- Banking Regulation (Amendment) Bill -- that seeks to remove 10 per cent voting right cap for shareholders.

Two other banking bills -- Payment and Settlement Systems Bill, and the State Bank of India (Subsidiary Banks Laws) Amendment Bill -- are to be sent to the Parliamentary standing committee.

These decisions were taken after two or three rounds of consultations senior ministers, including Defence Minister Pranab Mukherjee and Finance Minister P Chidambaram, had with Left parties' members.

CPI leader Gurudas Dasgupta said he had told the leader of the Lok Sabha Pranab Mukherjee that they would support the Banking Companies and Financial Institutions Law (Amendment) bill, provided the government did not do away with having a nominee of the Reserve Bank on the reconstituted boards of public sector banks.

"This initiative has been taken so as to remove misconception that the Left parties were only creating obstructions in the functioning of the government," he said.

The Left party sources also indicated that they have agreed to amendments in Factories Act to allow women in night shifts with certain conditions and facilities.