President issued ordinance related to monitoring of co-operative bank

President of India Ramnath Kovind has issued the Banking Regulation (Amendment) Ordinance, 2020. With this, all the urban and multi-state co-operative banks have now come under the supervision of the Reserve Bank (RBI). The rules have recently been amended to protect the interests of depositors of these co-operative banks. A statement issued by the government on Saturday said that this ordinance has ensured an amendment to the Banking Regulation Act, 1949, which is applicable to cooperative banks. The statement said that the objective of the ordinance is to protect the interests of depositors and strengthen cooperative banks by ensuring better governance and monitoring.

The government has given a statement that cooperative banks will also be brought within the purview of rights already available with the Reserve Bank of India (RBI) in relation to other banks, to ensure a systematic banking regulation by adopting a professional approach and With this, their access to capital can also be made possible. These amendments have not reduced the existing rights of state registrars of cooperative societies under state cooperative laws. These amendments do not apply to Primary Agricultural Credit Societies (PACS) or Co-operative Societies, whose primary objective and principal business is to provide long-term finance for agricultural development, and which refers to the term 'bank' or 'banker' or 'banking' And who do not act as the drawee of checks.

Section 45 of the Banking Regulation Act has also been amended through the ordinance so that the reorganization or merger of a banking company to protect the interests of the general public, depositors and banking system and ensure proper management. To be planned. Even without issuing a temporary moratorium on the functioning of the banking company concerned, it will be possible to plan its reorganization or merger without any disruption in the financial system completely.

Today is World MSME Day, Know interesting facts related to this event

Big change in price of gold and silver, know today's rate

140 workers of Bajaj factory found corona infected, two killed

Related News

Join NewsTrack Whatsapp group