New Delhi: The amendment to the Banking Regulation Rules to bring cooperative banks within the scope of the Reserve Bank of India has been passed in Parliament. The Banking Rules were amended to protect the interests of cooperative bank depositors. When the PM4C bank scam came to light, the co-operative bank’s management was found to be weak. That is why the government has decided to strengthen their regulatory system. An ordinance was issued on June 28. It was introduced in Parliament as the Banking Regulatory Bill (Amendment) Bill, 2020. The bill was passed in the Rajya Sabha by a verbal vote. It was passed in the Lok Sabha on the 16th of this month.
Cooperative banks can be corrected by the shortcomings in their management once they are managed by the Reserve Bank. There will be a professional attitude in management, banks will be able to get back, and the administrative sector will also improve. Participating in the debate on the bill, Finance Minister Nirmala Sitharaman said the bill had been amended to protect the interests of depositors. He also clarified that the rule will only apply to cooperatives that provide banking services. The situation of many cooperative banks has deteriorated during the Karona epidemic. The Reserve Bank is keeping a close eye on them. He spoke in support of the US Alliance, but said that maintaining some independence was important. But it took time for PMC Bank to come up with a solution.
