The Rajya Sabha today passed the Banking Regulation (Amendment) Bill 2020. During a discussion at the Upper House the Union Finance Minister Nirmala Sitharaman said that the amendments are made in a bid to protect the interests of depositors in co-operative banks.
“Amendments to the Banking Regulations (Amendments) Bill is introduced to completely protect the interests of depositors. There are only a few amendments, but they are brought in with a singular objective of protecting the depositors,” said the minister.
She further said that the centre wants to ensure proper management of the co-op banks and make sure they are professionally run.
The minister stated that if at all there arises the need to restructure any co-operative bank, then they are to be restructured without a moratorium period.
“ By making amendments in the Section 45 we are able to ensure a quick recovery, quick payback, and also make sure the interests of the depositors are protected,” she said.
The bill, which will permit RBI to initiate merger or reconstruction of a bank without placing it under moratorium, earlier passed in the Lok Sabha.