New Delhi: President Ram Nath Kovind has promulgated the Banking Regulation (Amendment) Ordinance, 2020 in pursuance of the commitment to ensure the safety of depositors across banks.
The Ordinance amends the Banking Regulation Act, 1949 as applicable to Cooperative Banks. It seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already available with RBI in respect of other banks to Co-operative Banks.
The amendments do not affect existing powers of the State Registrars of Co-operative Societies under state co-operative laws.
The amendments do not apply to Primary Agricultural Credit Societies or co-operative societies whose primary object and principal business is long-term finance for agricultural development.
The Ordinance also amends Section 45 of the Banking Regulation Act to enable the making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system.