Ahead of the G20 meet in Toronto, India has made its stand clear that it favours tighter norms rather than taxes on banks to prevent future failures of the financial institutions.
“The important thing is that the global economy should fully recover. We support all efforts at raising the benchmark of financial regulations,” said the finance secretary, Mr Ashok Chawla.
The Prime Minister, Dr Manmohan Singh, will be attending the G20 meeting, which starts from June 26.
Some of the European countries want that there should be a tax on the banks so that they are made to pay for bailing out the sector in a future crisis and the tax payer’s money is not used in future bailouts of the banks as was the case in the US. The IMF has also suggested such a tax on the banks. However, India is for better regulation to prevent any failure of banks.
Mr Chawla said that India would wait and watch the impact of China’s announ-cement over the weekend on greater flexibility for the yuan. “Let us not get into it. Let us wait and watch,” he said. China’s announcement is being seen as an attempt by its government to preempt a debate on the issue of yuan’s valuation at the G20 summit.