updated 12/18/2012 8:38:20 AM ET 2012-12-18T13:38:20

NEW DELHI (Reuters) - The Indian parliament passed a bill on Tuesday aimed at drawing foreign investment to the banking sector by increasing shareholders' voting rights, after dropping a controversial clause allowing banks to trade in commodity futures.

Prime Minister Manmohan Singh's government is in a race against the clock to pass reforms it says are needed to breathe life into Asia's third-largest economy, which is headed for the worst year of growth in a decade.

(Reporting by Manoj Kumar; Writing by Matthias Williams; Editing by Frank Jack Daniel)

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp

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