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RBI to issue fair practice code for banks: FM

The government said on Monday that a fair practice code had been framed and would be enforced soon on bank lending procedures as a prelude to legislation on lenders' responsibility.

Disclosing this in the Rajya Sabha, Finance Minister Jaswant Singh said the fair practice code had been framed in consultation with the Reserve Bank of India by an official working group, which had studied lending practices followed in other countries including the United States.

He said the proposed legislation would be framed in consultation with both the houses and if need be it could be referred to the standing committee of the two houses for scrutiny.

Singh, who was speaking after commending 'The Securitisation and Reconstruction of Financial Assests and Enforcement of Security Interest bill 2002' to the house, ran into an argument with senior Congress member Kapil Sibal when he complained that some bills referred to the parliamentary standing committees were being held back for an unusually long time.

To this, Sibal said there were legislations like Money Laundering Bill, which had been cleared by standing committees and which have not being brought forward for passage for more than two years.

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