The Banking Regulation (Amendment) Bill, 2020 was passed in the Lok Sabha.
The bill, moved by Finance Minister Nirmala Sitharaman, wants to bring cooperative banks under the supervision of the Reserve Bank of India .
“We are trying to bring this amendment to protect the depositors. As in some unfortunate situation in banks, depositors are put to hardship,” said Sitharaman.
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Anand Sharma, Congress leader questioned Union health minister Harsh Vardhan’s claim that the lockdown prevented around 14 to 29 lakh COVID-19 cases and 37,000-78,000 deaths in the country and also questioned the government to explain the basis of the claim.
“Yesterday, the health minister said that this decision (lockdown) prevented approximately 14 to 29 lakh COVID-19 cases & 37,000-78,000 deaths. The house must be informed what is the scientific basis on which we’ve reached this conclusion,” Sharma said in Rajya Sabha.
About the Bill
- Oversight of cooperative banks would be brought under the Reserve Bank of India through an amendment to the Banking Regulation Act, in order to increase professionalism and improve corporate governance.
- Cooperative banks would be audited according to RBI rules.
- Appointment of CEOs would require prior approval from the central bank.
- The RBI will also have the right to supersede the management of a cooperative bank in case of governance failure.
