As the coronavirus situation in India remains alarming, Rajya Sabha is ready to discuss the pandemic and the measures taken by the Center to slow the spread of the deadly virus. Vardhan had told Parliament on Monday that the decision to impose the blockade at the national level prevented between 14 and 29 lakh of Covid-19 cases and between 37,000 and 78,000 deaths in India. Reports on Tuesday indicate that the number of infections in the country has crossed the 5 million mark with 91,136 new cases.
Meanwhile in Lok Sabha, Finance Minister Nirmala Sitharaman will pass the 2020 Banking Regulation Bill (Amendment) for approval. The bill seeks to protect the interests of depositors by placing cooperative banks under the regulatory framework of the Reserve Bank of India (RBI).
With the amendments, RBI will be able to undertake a bank merger scheme without placing it in default. Previously, if a bank was in default, it not only limited depositor withdrawals, but also disrupted a bank’s loan operations.
Cooperative banks may also raise money through public issuance and private placement of shares or preferred shares, as well as unsecured obligations, with the consent of the central bank. Currently, access to capital from cooperative banks is limited.
In March, the finance minister Nirmala Sitharaman presented the amendments to the Banking Regulation Law of 1949 at the Lok Sabha. However, due to the outbreak of covid-19, Parliament was unable to approve the changes. Subsequently, on June 26, an ordinance was enacted.
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