A Bill to provide more powers to the Reserve Bank of India (RBI) for regulating co-operative banks was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday.
The Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of Punjab and Maharashtra Co-operative Bank scam, seeks to strengthen co-operative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.
Introducing the bill, Sitharaman said it is the “need of the hour” to avoid a PMC Bank-like crisis. Noting that the happenings at the PMC Bank had “unfortunately” put a lot of small depositors in difficulty, she said there were demands that the government should do something about it.
The Bill was introduced in the Lok Sabha amid the din, with Sitharaman saying if the opposition wants to deny the small depositors their rights then “it is a shame”.