The upper house has passed the Banking Regulation (Amendment) Bill 2020 through a voice vote. This bill would let RBI initiate a scheme for amalgamation of a bank without putting it under a moratorium. Finance Minister Nirmala Sitharaman, in the Upper House, stated that these amendments aim to safeguard the interest of depositors in co-operative banks.
Lok Sabha had also approved the amendment on September 16th. The bill has come after the PMC Bank scam and seeks to strengthen co-operative banks by professionalizing them, and enabling sound banking under the guidance of the RBI. The Act kept aside certain co-operative societies such as the co-operative land mortgage banks and primary agricultural credit societies.
Union Finance minister, Nirmala Sitharaman said that for the Banking Regulations (Amendments) Bill, such set of amendments would be completely safeguarding the interests of the depositors. However, there are less amendments but all are aimed at protecting the depositors. She further added that the government aims to introduce in appropriate management and ensure that the banks and institutions are run professionally.
In case there arises a need to restructure any such co-operative banks, then it need to be restructured without a moratorium period. After amending the Section 45, the government can ensure a quick recovery, payback, and also make sure that the interests of the depositors are protected.
Apart from this, the Companies (Amendment) Bill, 2020, the National Forensic Sciences University Bill, 2020 and the Essential Commodities (Amendment) Bill, 2020 were among the other major bills that were passed in the Upper House.