The President of India Ram Nath Kovind has signed the notification thereby promulgating the Banking Regulation (Amendment) Ordinance, 2020 on Saturday, a release from the Finance Ministry says.
“In pursuance of the commitment to ensure safety of depositors across banks, the President has promulgated the Banking Regulation (Amendment) Ordinance, 2020,” a finance ministry statement said on Saturday.
“The Ordinance 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 as well for sound banking regulation, and by ensuring professionalism and enabling their access to capital,” the statement added.
The leaders of Urban Cooperative Banking sector have reacted to the news of RBI’s total control over UCBs. While some have lauded the move, there are also some like Chalasani Raghavendra Rao, Chairman, Visakhapatnam Cooperative Bank who see in it a brazen attempt by the Centre to enter into states’ turf since cooperation is a state subject.