In a bid to guard the curiosity of depositors, the Lok Sabha on Wednesday handed an modification to the Banking Regulation Act to carry cooperative banks below the supervision of the RBI.
The Banking Regulation (Modification) Invoice, 2020 replaces an ordinance that was promulgated on June 26.
Replying to the controversy on the invoice, Finance Minister Nirmala Sitharaman mentioned this laws is for depositors’ security and never for undermining powers of the Registrar of Cooperative Societies.
Powers of the Registrar of Cooperative Societies haven’t been encroached upon however banking exercise of cooperatives can be regulated by the Reserve Financial institution of India (RBI), she mentioned.
City cooperative banks and multi-state cooperative banks can be introduced below the RBI’s supervision course of relevant to business banks.
There are about 1,482 city cooperative banks and 58 multi-state co-operative banks with a depositors base of about eight.6 crore.(Solely the headline and movie of this report could have been reworked by the Enterprise Normal workers; the remainder of the content material is auto-generated from a syndicated feed.)