New Delhi: The Rajya Sabha passed the Reserve Bank of India Amendment Bill 2005 on Thursday, a day after the Lok Sabha gave its approval for the initiative to empower the country's apex bank for managing the financial sector.
Minister of state for finance, Pawan Kumar Bansal said the new law would remove ambiguity in legal validity to cover over-the-counter derivative tradings.
Replying to a debate on the bill, he said the move is not meant to cover all aspects of economic activity in the country.
He said the government has taken determined measures to check scams in initial public offerings (IPOs).
During the debate, Congress leader Abhishek Singhvi said the bill would provide the Reserve Bank of India (RBI) with more powers as a regulator.
It will let the RBI decide on repo rate and Credit Reserve Ratio, which is in conformity with the global paradigm.
The bill introduced last year had gone through close scrutiny at the parliamentary standing committee.
C Ramachandriah of the Telegu Desam party said more funds would now be available with the banks. But capital markets are undergoing major changes.
Unless fundamentals of the economy are strong, Sensex going up is meaningless, he said.
Mr Ramachandriah said abnormal volatility in sensex should be checked.
Others who participated in the debate were Ramdas Agarwal of the BJP, Janardhana Poojary of the Congress, P G Narayanan of the AIADMK and Moinul Hassan Ahamed of the CPI-M.
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