RS passes Banking Amendment Bill to put cooperative banks under RBI ambit

The Rajya Sabha Tuesday passed the Banking Regulation (Amendment) Bill 2020 via voice vote.

The Amendment, which Lok Sabha approved on September 16, replaces an ordinance that was promulgated on June 26.

The bill will allow RBI to initiate a scheme for amalgamation or reconstruction of a bank without placing it under moratorium.

The bill comes in the backdrop of the PMC Bank scam and seeks to strengthen co-operative banks by professionalising them, improving governance, ensuring access to capital and enabling sound banking through the RBI. The Act, however, excludes certain co-operative societies such as co-operative land mortgage banks and primary agricultural