LS passes Banking Regulation (Amendment) Bill, more powers to RBI over UCBs

The Bill intends to empower co-operative banks to raise equity or unsecured debt capital from the public subject to prior RBI approval

The passage of the bill to amend the Banking Regulations Act will enhance the Reserve Bank of India’s power to supervise co-operative banks to protect the interests of depositors and strengthen banking entities.

The government introduced the Bill in Lok Sabha replacing the ordinance, promulgated on June 26, 2020, in the current monsoon session. The Lower House of Parliament (Lok Sabha) passed the bill on Wednesday and it will become a law after the President signs it and it is notified. 

The banking regulator has already started working on increasing the oversight of urban co-operative banks (UCBs).

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