Rajya Sabha passes Banking Regulation (Amendment) Bill 2020 through a voice note

Rajya Sabha on Tuesday passed Banking Regulation (Amendment) Bill 2020 through a voice te. During discussion in Parliament, Union Finance Minister Nirmala Sitharaman stated that amendment sought to protect interests of depositors in co-operative banks. Union Minister highlighted that government wants to bring in 'proper manment and make sure y are professionally run'.

"If at all we need to restructure any such co-operative banks n we need to be restructured without a moratorium period. By amending Section 45 we are able to give a quick recovery, quick payback, and also make sure interests of depositors are safeguarded," Union Finance Minister said in Rajya Sabha. Lok Sabha had approved Bill last week. 

Banking Regulation (Amendment) Bill 2020

Amendment of Section 45 of Banking Regulation Act is aimed to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting interest of public, depositors, and banking system and for securing its proper manment, even without making an order of moratorium, so as to avoid disruption of financial system. Besides, amendments in sections 3 and 56 extend provisions applicable to scheduled commercial banks to cooperative banks and bring m within RBI regulation.

Rajya Sabha passed bill in absence of several Opposition members, including those from Congress and Samajwadi Party walking out over issue of suspension of eight parliamentarians and farm-related bills. 

READ | 'Changes In Banking Regulation Law Aimed At Improving Governance In Cooperative Banks': FM