India govt. drops commodity trade clause from bank bill

The controversial clause from a banking bill which allows banks to trade in commodity futures will be dropped by the government, says Parliamentary Affairs Minister Kamal Nath.

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.

A letter has been sent to the Lok Sabha Speaker saying that the Forwards Contract Clause has been dropped, according to the minister. In the lower house of parliament as soon as Tuesday the bill would be voted.