RBI governor Bimal Jalan met finance miniser Yashwant Sinha to discuss the issue on Wednesday. The meeting was also attended by revenue secretary Javed Choudhury. According to finance ministry sources, the meeting could not make much headway and the ministry has sought the opinion of the economic advisory council on the money laundering bill. "It will take time for the bill to be passed as an Act as the PMO will make the necessary changes only after getting the view of the council. Besides, both the finance secretary as well as the revenue secretary are new entrants," sources said.

The cabinet cleared the money laundering and Fema bills in July. While Fema seeks to repeal the FERA, Fema is meant tousher in a more liberal forex regime. However, the RBI has found some of the provisions of the money laundering bill as "draconian" and it wants the Centre to be more "flexible" on certain counts.