The government has decided to wait for political consensus to emerge before raising the voting rights for foreign investors in private banks beyond 10 per cent.
The Cabinet which, was expected to discuss the proposed amendment to the Banking Regulation Act to link the cap to shareholding, will not take up the matter as the finance ministry has decided to go slow on the issue, sources in the government said.
The Left parties have opposed the move and the Reserve Bank of India has also expressed its reservations against the proposal.
The Cabinet, scheduled to meet tomorrow morning, will, however, take up amendments to the process of negotiations of transnational oil and gas pipelines to speed up the process for creating oil security in the country.
The petroleum ministry has sought that the powers to negotiate such deals be vested with it instead of with the representatives of the ministry of external affairs heading the joint working group.
The proposal is in line with the new strategy adopted by the petroleum ministry, which is pushing oil diplomacy. The ministry's Cabinet note has mentioned the negotiations on the pipelines from Myanmar, Iran and Turkmenistan. Officials said the present system of clearances from the ministry of external affairs and the defence ministry would continue.