Parliament has cleared entry of corporates into the banking sector by approving Banking Laws Amendment Bill 2012 that would give RBI more regulatory powers.

After passing of the Banking Laws (Amendment) Bill, 2012 in the Rajya Sabha, Finance Minister P Chidambaram told reporters in New Delhi that there is a need for more banks in the country. He justified RBI as the regulator for the banking industry.

The Lok Sabha had approved the Bill earlier after the government dropped a certain clause concerning allowing banks to trade in commodity futures.

RBI had already issued the draft guidelines in thisregard and had assured the government that it would initiate the process of issuing new bank licenses once the Amendment Bill is passed by Parliament.