The Lok Sabha today passed a bill to amend the Reserve Bank of India Act, 1934 giving more teeth to the central bank to deal with subjects under the Act including reserve repo and credit reserve repo (CRR) rates."The RBI will be armed with greater autonomy and authority to deal with subjects under the Act," finance minister P Chidambaram said replying to a debate on the Bill.The Reserve Bank of India (Amendment) Bill, 2005 was passed in the house by a voice vote. The amendment was necessary due to the changing role of financial sectors and the increasing role of India's economy in the global market. The RBI had adequate powers as a regulator but certain "strange" developments in the market necessitated the amendment, Chidambaram said.The changes in the Bill were made in line with recommendations made by the standing committee on finance. The legislation would also let the RBI decide the repo rate and CRR, Chidambaram said.
