The Banking Regulation (Amendment) Act, 2020 received Presidential assent on 29th September, 2020. It amends the Banking Regulation Act, 1949. The act replaces the Banking Regulation (Amendment) Ordinance, 2020 promulgated on June 26, 2020.
Key Features: It extends the applicability of the Banking Regulation Act over the Primary cooperative banks (other than a Primary Agriculture Cooperative Society), Central co-operative bank, state co-operative banks.
Implications: As the conditions of cooperative banks and commercial banks have deteriorated due to NPAs winding up of banks, the government has taken the right steps to improve the condition. It will enable the RBI to ensure that co-operative banks function effectively as they are important for providing services to the last mile.