Published 21:08 IST, September 6th 2020

Banking & Agriculture: Centre's two most contentious bills in this 18-day Monsoon Session

As Parliament prepares for Monsoon session, the Centre plans to introduce 20 bills in the 18-day parliamentary session from  September 14 to October 1.

Follow: Google News Icon
  • share
null | Image: self
Advertisement

As Parliament prepares for Monsoon session, Centre plans to introduce 20 bills in 18-day parliamentary session from  September 14 to October 1. Apart from 20 bills,  11 ordinances will also have to be passed during session as most of m face an expiry date by winter session. Centre has allowed a 30-minute question hour with only unstarred questions to be taken while it scrapped private members' business due to Coronavirus (COVID-19) constraints.

Here are top bills to be introduced:

  • Companies (Amendment) Bill, 2020
  • Major Port Authorities Bill, 2020
  • Medical Termination of Pregnancy (Amendment) Bill, 2020
  • Indian Institutes of Information Techlogy Laws (Amendment) Bill, 2020
  • Banking Regulation (Amendment) Ordinance, 2020
  • Salaries, Allowances and Pension of Members of Parliament (Amendment) Ordinance, 2020
  • Essential Commodities (Amendment) Ordinance, 2020
  • Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm services ordinance, 2020
  • Epidemic Diseases (Amendment) Ordinance 2020

Modi govt allows 30-min Question hour in monsoon session after huge Opposition uproar

Advertisement

While most bills are aimed at major structural changes amid COVID-19 pandemic, most contentious bills are Banking Regulation (Amendment) Ordinance, 2020 along with two agriculture-based bills - Essential Commodities (Amendment) Ordinance, 2020 & Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm services ordinance, 2020. Both bills have faced stiff opposition from n-BJP parties like Congress, NCP, AIMIM etc. NCP Supremo Sharad Pawar has strongly opposed amending Banking Regulation Act stating conversion of urban cooperative banks into private banks to stop misappropriation of funds, while Congress-led Punjab govt has passed a resolution rejecting agriculture bills.

Banking Regulation Ordinance

Banking Regulation Ordinance to be introduced by Finance Minister Nirmala Sitharaman aims in getting all co-operative banks under purview of Reserve Bank of India (RBI). ordinance which has been promulgated on June 26, 2020, aims at tackling misappropriation of funds amid PMC Bank scam, PNB Bank scam etc. Ordinance also excludes primary agricultural credit societies, cooperative societies involved in long term financing for agricultural development from Act.

Advertisement

Key features of ordinance (as per PRS)

  • RBI can place a banking company under a moratorium, reconstruct such a bank in interest of depositors, general public without placing under a moratorium.  During moratorium, legal action can be initiated or continued against bank for a period of up to six months and bank cant make any payment, grant any loans or make investments during moratorium.
  • RBI may supersede Board of Directors of a multi-state cooperative bank for up to five years in public interest
  • Co-operative banks will be allowed to issue equity shares, preference shares, or special shares with prior approval of RBI.
  • Ordinance states that RBI may exempt a cooperative bank or a class of cooperative banks from certain provisions of Act pertaining to employment, Board of Directors and appointment of a chairman.

Centre rolls out 11 measures for farmers, fishermen & animals in third ecomic tranche

Essential Commodities (Amendment) Ordinance, 2020

Amid nationwide lockdown, Centre rolled out its third tranche of ecomic measures to kickstart ecomy which included three governance and administrative reforms in agriculture. Amending Essential Commodities act, Centre aimed to enable better price realisation for farmers by attracting investments - making agriculture sector competitive. Agriculture food stuff including cereals, edible oils , oilseeds, pulses, onions and potato to be deregulated while stock limits were to imposed under extreme conditions.

Advertisement

Key features of ordinance (as per PRS)

  • Centre may regulate supply of foodstuffs like cereals, pulses, potato, onions, edible oilseeds, and oils, only under extraordinary circumstances which include war, famine, extraordinary price rise and natural calamity.
  • Stock limits may be imposed only if re is a 100% increase in retail price of horticultural produce and 50% increase in retail price of n-perishable agricultural food items. But se tock limit will t apply to a processor or value chain participant of agricultural produce
  • provisions of Ordinance regarding regulation of food items and imposition of stock limits will t apply to orders pertaining to Public Distribution System.

markets reel amid global selloff; banking, finance stocks bear brunt

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm services ordinance, 2020

This ordinance anunced by FM Sitharaman as part of third tranche of ecomic measures amid lockdown, provides a framework for protection and empowerment of farmers with reference to sale and purchase of farm products overriding all state APMC laws. ordinance which was promulgated on June 5, 2020, will enable farmers for engaging with processors and aggregators, large retailers, exporters in a transparent way. Most state-based parties are expected to oppose this bill in Parliament. In recently released FY 21 - Q1 figures by Centre, Agriculture sector is only one which grew by 13% due to lockdowns.

Advertisement

Key features of ordinance (as per PRS)

  • A farming agreement between farmers and sellers which include individuals, partnership firms, companies, limited liability groups and societies prior to production or rearing of any farm produce. role and services of any third party, including aggregators, will have to be explicitly mentioned in agreement.   State governments may establish a registration authority to provide for registry of such agreement.
  • Terms and conditions for supply, quality, standards and price of farming produce, as well as terms related to supply of farm service, maybe set subject to certification. farming agreement may be linked with insurance or credit instruments under schemes of central and state governments ensure risk mitigation and credit flow to both. minimum period of an agreement will be one crop season while maximum period will be 5 years.
  • Farming produce under a farming agreement will be exempted from all state Acts aimed at regulating sale and purchase of farming produce and Essential Commodities Act, 1955.  price to be paid for purchase of farming produce will be mentioned with details like guaranteed price to be paid, any additional amount over and above it including bonus or premium specified.
  • farming agreement must provide for a conciliation board as well as a conciliation process for settlement of disputes. If dispute remains unresolved by Board after thirty days, parties may approach Sub-divisional Magistrate for resolution and Appellate authority if needed. While both magistrate and Appellate board can impose certain penalties on party contravening agreement, action can be taken against agricultural land of farmer for recovery of any dues.

India's GDP crashes to -23.9% in Q1- FY21 due to COVID-19; worst contraction till date 

21:08 IST, September 6th 2020