The Central government on 3rd March 2020 has introduced a Bill in the Parliament to amend the banking regulation law to give more power to Reserve Bank of India to regulate cooperative lenders and prevent frauds such as the one seen at Punjab and Maharashtra Co-operative (PMC) Bank Ltd.
The bill is proposed 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.
The Banking Regulation Amendment Act 2020 shall not be applicable to primary agricultural credit society or a co-operative society whose primary object and principal business is providing long term finance for agricultural development.
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