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Banking division to become a department

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Siddharth Zarabi New Delhi
Last Updated : Feb 05 2013 | 1:36 AM IST
In a move to streamline the working of the banking and insurance division in the finance ministry, the government is set to approve a proposal to convert it into a department. Official sources said the proposal was with the Cabinet Secretariat and approval was expected shortly.
 
The new department will be the fifth in the ministry and named the department of financial sector. It will be headed by Vinod Rai, secretary, financial sector, a position in which he is responsible for the banking and insurance division.
 
The new department is needed as under the current dispensation, the financial sector secretary has to route files for the ministers' approval through his counterpart in the department of economic affairs.
 
This is because the administrative rules specify that the division files have to be routed through a departmental head (the secretary).
 
After the change, the ministry will have five departments "�expenditure, revenue, economic affairs, disinvestment and financial sector. The last two do not function out of North Block.
 
Meanwhile, speculation continues on who will be the new chief economic advisor in the ministry as incumbent Ashok K. Lahiri is moving to the Asian Development Bank as executive director representing India. He will demit his present assignment on July 15.
 
Unconfirmed reports suggest that Parthasarathi Shome, adviser to the finance minister, may be asked to take up the job. In any case, the office of the advisor to the finance minister is under the department of economic affairs and so is the office of the chief economic advisor.
 
There are other contenders for the job and a final decision is expected shortly, said sources.

 
 

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First Published: Jul 07 2007 | 12:00 AM IST

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