Business Desk, Tech for FTCP, New Delhi
Updated Wed, 16 Sep 2020 07:57 PM IST
Finance Minister Nirmala Sitharaman in the Lok Sabha
– Photo: ANI
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This amendment not to take over cooperative banks
He said that this amendment has also not been brought to take over cooperative banks. This is not the first time that regulation is being done to give RBI some powers. In the Lok Sabha, the Finance Minister did not describe the condition of some banks as good.
Financial condition of 277 cooperative banks is not good
He said that the financial position of 277 cooperative banks is not good. At the same time, he said that 152 cooperative banks are also unable to meet the minimum regulatory capital. Apart from this, he said that the net worth of 47 banks is negative. The NPA ratio of 328 urban bankers is more than 15 percent.
Amendment to protect depositors
The Finance Minister said, “We are trying to amend it to protect depositors.” He said, as some unfortunate situation in banks put depositors in difficulty. In this case, this amendment can prove to be effective.
Bill was withdrawn on the first day of the session
On the first day of the session, Sitharaman had withdrawn the bill saying that it was being withdrawn to add some new things to give the Reserve Bank of India a chance to restructure the troubled cooperative banks, which is extremely important. Explain that the bill was passed on 3 March this year during the budget session and an ordinance was subsequently passed.