The Ministry of Law and Justice on Friday notified the Banking Regulation (Amendment) Ordinance, 2020.
The Government introduces Banking Regulation (Amendment) Ordinance, 2020 so to bring the co-operative banks on par with the developments in the banking sector through better management and proper regulation of co-operative banks with a view to ensure that the affairs of the co-operative banks are conducted in a manner that protects the interests of the depositors.
It is further proposed to strengthen the co-operative banks by increasing professionalism, enabling access to capital, improving governance, and ensuring sound banking through the Reserve Bank of India.
The government seeks to amend the Banking Regulation Act, 1949, which will be enforced at once except Section 4, which shall come into force when the central government may notify.
This act will not be applicable to the primary agricultural credit society and a co-operative society whose primary objective is to and principal business are providing of long term finance for agricultural development if such society does not use as part of its name, or in connection with its business, the words “bank”, “banker” or “banking” and does not act as drawee of cheques.
Section 53A relating to the power to exempt cooperative banks in certain cases, which reads as “Notwithstanding anything contained in any other provision of this Act, the Reserve Bank may, from time to time, on being satisfied that it is necessary so to do, declare by notification in the Official Gazette, that the provisions of item (iii) of clause (b) of sub-section (1) and sub-section (2) of section 10, clause (a) of sub-section (2) of section 10A, sub-section (1A) of section 10B and clause (b) of sub-section (1) of section 35B of this Act shall not apply to a co-operative bank or class of co-operative banks, either generally or for such period as may be specified therein, subject to such conditions, limitations or restrictions as it may think fit to impose.”To Read the full text of the Notification CLICK HERE