Lok Sabha Passes Banking Regulation Bill To Bring Cooperative Banks Under RBI’s Supervision
Lok Sabha passed the Banking Regulation (Amendment) Bill, 2020 which seeks to make cooperative banks under the supervision of the Reserve Bank of India (RBI) to improve their governance and protect depositors’ money while empowering the banking regulator to make a restructuring or combination scheme for a struggling bank without first placing it under a moratorium.
“We have brought this amendment to protect the depositors. Absolutely there was a need for an ordinance. Several members have highlighted that because of Covid, one wasn’t sure when the next session of Parliament would be and in the meanwhile the protection of depositors was of critical importance,” said Nirmala Sitharaman.
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“We are not doing anything to touch state cooperatives, we are not doing anything to primary agricultural credit societies, we are not doing anything to touch cooperative societies whose primary object and business is providing long-term finance for agricultural development,” she added.
