Lok Sabha

September 14, 2020

Saugata Roy opposes the introduction of The Banking Regulation (Amendment) Bill, 2020

Saugata Roy opposes the introduction of The Banking Regulation (Amendment) Bill, 2020


Under Rule 72 (1) of the Rules of Procedure, I oppose The Banking Regulation (Amendment) Bill, 2020. The Minister has just withdrawn one Bill that she had brought here earlier, and I see that in the interregnum between the two sessions, the Minister’s hair has grayed. Maybe the horrible state of the economy has led to this greying. [protests]

Sir, koi kharap baat bola? Have I used any unparliamentary word? What is the objection?

Sir, through this Ordinance, the Central government has brought all district central cooperative banks (DCCB) and urban cooperative banks (UCB) under the Centre’s control and designated the Reserve Bank of India as the regulator. Power has been used to alter the membership structure and the financial structure of the cooperative banks, which may result in the transfer of control and management to strangers and predators. The motive behind this Ordinance is that all major financial intermediaries should be under the control of the Central government. And all those who are in the management of DCCBs and UCBs—elected directors—should be obliged to the Central government.

This Ordinance is a naked aggression on States’ rights and the worse of federalism is on display. Till now, the State Government was the controlling regulator as far as the cooperative banks were concerned. Now the States’ power has been removed, their power has been taken away. The control of supervision of cooperative banks should stay with the State governments.