The government on Monday introduced in Lok Sabha the Banking Regulation (Amendment) Bill, which seeks to bring cooperative banks on par with developments in the banking sector through their better management and proper regulation to protect the interests of depositors.
Opposition members, including Shashi Tharoor of the Congress and Saugata Roy of the Trinamool Congress, opposed the bill, accusing the Centre of encroaching on the rights of states. Finance Minister Nirmala Sitharaman rejected the charge, asserting that state cooperative laws are not being touched and that the proposed law seeks to bring these banks with same regulations that are applicable on other banks.
It is applicable to those cooperative banks which deal with "bank, banker and banking," she said, adding that as many as 277 urban cooperative banks have reported losses. Tharoor said the bill is an encroachment on federalism, while Roy claimed it attacks "state rights".
Ruling party members also opposed Roy's personal remarks targeting Sitharaman, with Parliamentary Affairs Minister Pralhad Joshi demanding his apology. Speaker Om Birla said Roy's comments have been expunged. The finance minister also introduced the Factoring Regulation (Amendment) Bill, 2020.