Madras High Court has asked the Centre and RBI to file their counter affidavits to the petitions by two cooperative banks in Tamil Nadu questioning the constitutional validity of some sections of the Banking Regulation (Amendment) Ordinance of 2020.
These two banks are Big Kanchipuram Cooperative Town Bank Ltd and Velur Cooperative Urban Bank. However, the court did not grant any interim relief to the two cooperative banks.
The cooperative banks had demanded stay on operations of the provisions of the ordinance that empowers RBI to deal with incorporation, regulation and winding up of cooperative banks too.
In the petition the cooperative banks argued that the subject matter falls exclusively within the competence of the State Legislature. The next hearing in the case will take place on September-1.