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

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

"If at all we need to restructure any such co-operative banks then 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 the interests of the depositors are safeguarded," the Union Finance Minister said in the Rajya Sabha. Lok Sabha had approved the Bill last week. 

Banking Regulation (Amendment) Bill 2020

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

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

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