The Reserve Bank of India has found a way to keep the banking sector out of the Competition Commission of India’s (CCI) ambit on mergers and acquisitions (M&As). The Banking Laws (Amendment) Bill, 2011, currently being vetted by a parliamentary standing committee, has a new clause — Section 2A — inserted after Section 2 that specifies, “Notwithstanding anything contrary contained in Section 2, nothing contained in Competition Act, 2002, shall apply to any banking company, the State Bank of India, any subsidiary bank, any corresponding new bank or any regional rural bank or cooperative bank or multi-state cooperative bank in respect of the matters relating to amalgamation, merger, reconstruction, transfer, reconstitution or acquisition under respective Acts.” With the move of the central bank of getting an “indirect exemption” for the sector from Section 5 and 6 of the Competition Act, pertaining to mergers and acquisitions (M&As), the CCI has been effectively kept away from the banking sector.
IE
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