FM to move Banking Regulation (Amendment) Bill, 2020 in Lok Sabha today

Union Finance Minister Nirmala Sitharaman will move the Banking Regulation (Amendment) Bill, 2020 for consideration and passage in Lok Sabha on Thursday.

Earlier this month, the Bill that seeks to improve governance and regulation of cooperative banks was introduced in Lok Sabha by Sitharaman amid ruckus in the House over opposition demand for an immediate discussion on Delhi violence.

The Bill seeks to strengthen the cooperative banks so as to prevent a crisis like that faced by PMC bank due to financial irregularities which caused distress to depositors.

It seeks to strengthen cooperative banks by increasing professionalism, enabling access to capital, improving governance and "ensuring sound banking" through Reserve Bank of India.

Sitharaman had said in her budget speech that the government would amend the Banking Regulation Act.

"To strengthen cooperative banks, amendments to the Banking Regulation Act are proposed for increasing professionalism, enabling access to capital and improving governance and oversight for sound banking through the RBI," she had said.