It is learned that the Banking Act has been amended by Parliament to bring cooperative banks within the scope of the Reserve Bank of India.

That is why the government has decided to strengthen its regulatory system.

: Bill passed in Parliament :

An ordinance was passed on June 28, which passed the Banking Regulations (Amendment) Bill, 2020. It was passed in the Rajya Sabha by a verbal vote in Rajya Sabha. It was passed in the Lok Sabha on September 18.

Cooperative banks will be able to improve their management shortcomings once they are within the purview of the Reserve Bank of India.

In a debate on amending the bill, Finance Minister Nirmala Sitharaman said the rule was for the benefit of depositors and made it clear that the rule would only apply to cooperatives that provide banking services.

The Reserve Bank of India is keeping a close eye on them as the co-operative banks are in a state of disarray during the Karona epidemic. He cited the example of Yes Bank, which said it was run under commercial banking rules and was quick to resolve the issue, but it took a while for PMC Bank to come up with a solution.

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