The finance ministry is examining the possibility of a single regulator to guide the operations of non-banking financial companies, private companies and chit-fund operations.
Finance minister Jaswant Singh told the consultative committee attached to his ministry today that the economic affairs secretary (financial sector) had been directed to give his report on the issue within four weeks. He added the presence of several regulators for similar financial operations "caused confusion and created hindrances in checking irregularities".
Singh also announced the formation of a committee in the finance ministry to strengthen the rural credit network. It will be headed by minister of state for finance Anant Geete.
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Singh will meet representatives of urban co-operative banks from across the country on July 27 in Mumbai. The finance minister appointed a committee to look into the specific issues of the sector and recommend solutions within a month.
Meanwhile, Singh also met Planning Commission deputy chairman K C Pant to discuss the progress made on the Tenth Plan and the operationalisation of the Rs 2,500 crore development reform facility (DRF).