Banking

2. The Banking Regulation (Amendment) Bill, 2020
The Banking Regulation Act, 1949 - Cooperative Banks
Applicable on Cooperative Banks
Objective- To protect interest of depositor
To avoid PMC Bank like incident
The Banking Regulation Act, 1949 - Not apply to-
(i) Primary Agricultural Credit Societies
(ii) Cooperative Land Mortgage Banks
(iii) any other cooperative societies
the union cabinet approved the ordinance to bring 1,482 urban and 58 multi-
state cooperative banks under the supervision of the central bank.

3. What would be the change- The Banking Regulation Act, 1949
Act will apply to all the Cooperative Societies including Cooperative Land Mortgage
Banks
Act will not apply to: (i) primary agricultural credit societies, and
(ii) cooperative societies whose principal business is
long term financing for agricultural development.
Societies must not:
(i) Use the words ‘bank’, ‘banker’ or ‘banking’
(ii) Cheques Clearing
cooperative bank may issue equity shares, preference shares
may issue unsecured debentures or bonds
RBI may supersede the Board of Directors of a multi-state cooperative bank for up to
five years under certain conditions.