New Delhi: The government on Saturday said it will keep merger and acquisitions in the banking sector outside the purview of the Competition Act.

"Regarding consolidation in the banking sector, this is outside the purview of the Competition Act. That will be regulated by the Banking Regulation Act," Finance Minister Pranab Mukherjee said during an industry interaction organized by CII.

The Reserve Bank has asked the government to keep consolidation in the banking sector outside the Competition law as it would not be easy for other regulators to understand the complexities of the sector.

Under the norms notified by the government recently, all large mergers and acquisition will have to be ratified by the Competition Commission of India (CCI).

"A legislation in detail will be placed before Parliament," Mukherjee added.

(Agencies)