Banking Regulation Bill moves to President's table for ratification
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New Delhi: Banking Regulation (Amendment) Bill 2020 has been tabled for President's nod as Rajya Sabha passed the bill by voice vote on Tuesday.
The bill introduced by Finance Minister Nirmala Sitharaman proposes to protect the interest of the depositors by bringing Cooperative Banks under the Reserve Bank of India's regulatory framework.
The Lok Sabha had passed the bill on September 16.
During the debate on the bill, the Opposition raised that Cooperative Societies is a State subject under Schedule VII of the Constitution.
The Finance Minister defended that the bill intends to regulate banking activities only and does not apply to other cooperative societies.
The bill has excluded primary agricultural credit societies and cooperative societies whose principal business is long term financing for agricultural development. However, the bill stipulates such societies to refrain from using the words 'bank', 'banker' or banking in their names.
The new regulation will also empower the RBI to supersede the board of directors of cooperative societies in public interest or to protect depositors after consultation with the concerned state government.