NEW DELHI Dec 18 The Indian government will
drop a controversial clause from a banking bill pending in
parliament that would have allowed banks to trade in commodity
futures, Parliamentary Affairs Minister Kamal Nath said on
Opposition to the clause threatened to stall the passing of
the bill, which is aimed at drawing foreign investment into the
banking sector and increasing the Reserve Bank of India's (RBI)
regulatory oversight in local banks.
"We are dropping the future clause in the banking amendment
bill," Nath told Reuters.
The bill could voted on in the lower house of parliament as
soon as Tuesday.
(Reporting by Nigam Prusty; Writing by Matthias Williams;
Editing by Frank Jack Daniel)