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Banking Regulation (Amendment) Bill, 2020
September 26 , 2020
1444 days
817
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- The Banking Regulation (Amendment) Bill, 2020 passed by the parliament to replaces an ordinance to the same effect promulgated on June 26.
- The Bill proposes amendments to the Banking Regulation Act, 1949.
- This new Bill aims to bring cooperative banks under the supervision of the Reserve Bank of India (RBI).
Highlights
- All the Provisions applicable to banking companies will also be applicable to cooperative banks.
- It will help the central bank to develop a scheme to ensure the interest of the public, banking system, account holders in the bank and banking company’s proper management, without disrupting any banking functionalities.
- The amendments also allow cooperative banks to raise money via public issues and private placements of equity or preference shares as well as unsecured debentures.
Exceptions
- It will not affect the existing powers of the state registrars of co-operative societies under state laws.
- It will not apply to Primary Agricultural Credit Societies (PACS) or co-operative societies whose primary object and principal business is long-term finance for agricultural development, and which do not use the words “bank”, “banker” or “banking”.
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