Insta
The RBI headquarters in Mumbai. (GettyImages)
The Banking Regulation (Amendment) Bill, 2020 was passed in the Rajya Sabha on Tuesday (22 September) to bring co-operative banks under the umbrella of the Reserve Bank of India (RBI) for better monitoring and supervision.
Union Finance Minister Nirmala Sitharaman, while answering questions on the bill, said many of these banks had faced crisis amid the Covid-19 pandemic, Hindustan Times reported.
The RBI is now monitoring their finances and losses, she added.
The banks will now be monitored by the central bank like the other scheduled banks. The RBI's intervention will extend protection to depositors and ensure less scope for mismanagement.
The bill was passed in the Lok Sabha on 16 September.
The central government, earlier, had brought in an ordinance in June to amend the law which was signed by President of India Ram Nath Kovind on 26 June. The bill will now replace the ordinance.
The amendments to Banking Regulation Act, 1949 does not affect existing powers of the State Registrars of Co-operative Societies under state co-operative laws. It will also not apply to Primary Agricultural Credit Societies (PACS) or co-operative societies whose principal business is long-term finance for agricultural development, and which do not use the word "bank" or "banker" or "banking" and do not act as drawees of cheques.
The country has various types of co-operative banks such as urban co-operative banks (UCBs) and rural co-operative banks (RCBs); and RCBs are further classified into state co-operative banks (StCBs) and district central co-operative banks (DCCBs).
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest