The idea of new tax on banks got a tough blow yesterday when the US rejected the idea at the G20 summit in St Andrews.

Speaking on the so-called 'Tobin tax' at the G20 summit, Alistair Darling suggested that the any new tax to fund bank bailouts should be universal and comprehensive.

But, Tim Geithner, the US Treasury Secretary, rejected the idea flatly, saying Washington was not ready to support the new tax.

Supporters of Tobin tax believe that it could slash the size as well as volatility of Big Finance and boost development in the poor countries of the world.

Speaking his mind, Max Lawson of Oxfam said, "A tax on banks would be a major step towards clearing up the mess caused by their greed.

The G20 has a responsibility to act." Though, Britain's idea of a transactions tax on banks was rejected, yet the summit agreed to continue backing the financial markets until global economic recovery is certain.