Cooperative Banks Under RBI: LS Passes Banking Regulation (Amendment) Bill, 2020

New Delhi: The Lok Sabha on Wednesday passed the Banking Regulation (Amendment) Bill, 2020, which is aimed to bring cooperative banks under the supervision of Reserve Bank of India.

The bill, moved by Finance Minister Nirmala Sitharaman, replaces an ordinance the Union Cabinet had approved in June. “We are trying to bring this amendment to protect the depositors. As in some unfortunate situation in banks, depositors are put through hardship,” said Sitharaman.

The Congress and DMK opposed the Bill, stating that it infringes upon the rights of states. But they were outnumbered.