Bill to amend Banking Regulation Act

In a bid to address weaknesses in cooperative banking sector, the Parliament is likely to clear a Bill to amend Banking Regulation Act to bring multi-state cooperative banks under effective regulation of RBI during the Budget session.

There are 1,540 cooperative banks with a depositor base of 8.60 crore having total savings of about Rs. 5 lakh crore.

The Union Cabinet headed by Prime Minister Narendra Modi last month gave approval to amend Banking Regulation Act. The Bill in this regard is likely to be passed during the second leg of Budget session starting Monday.

The session ends on April 3.