THE BANKING REGULATION [AMENDMENT] BILL 2020 - as introduced by the FINANCE MINISTER MRS. NIRMALA SITHARAMAN - has been passed in the RAJYA SABHA, after clearing in LOK SABHA earlier this week. The same bill was passed as an ORDINANCE by Modi Govt. earlier - amidst COVID-19 situation. Which is ratified now, as per procedural requirements.
Provisions of the Bill:
♦ The Bill will provide the Reserve Bank of India (RBI) powers to restructure cooperative banks.
♦ The Bill will bring cooperative banks under the umbrella of RBI and would not affect state cooperative laws.
♦ As per the bill, with prior recommendation of RBI, the co-operative banks will be able to raise the money by public issues and private placements of equity, the preference shares and through unsecured debentures.
♦ The bill recommended to empower RBI for amalgamation of banks in order to remove the cap for the withdrawals by depositors and to smoothen the process of lending operation of the bank.
♦ In general, the Bill proposes to strengthen the co-operative banks by enabling access to capital, increasing professionalism, improving governance and ensuring sound banking through RBI.
The bill was proposed as a tool, to strengthen the Indian banking system by giving the country’s apex banking institution RBI more power over India’s 98000 plus rural and urban cooperative banks.
[1] The proposed law seeks to enforce the banking guidelines of the RBI on COOPERATIVE BANKS, while the administrative issues will still be guided by the REGISTRAR OF COOPERATIVE SOCIETIES. It also proposed to BRING COOPERATIVE BANKS at par with developments in the banking sector through better management and proper regulations to protect the interest of the depositors.
[2] THIS MEANS, THAT the RBI RESERVES THE RIGHT TO SUPERSEDE ANY DECISIONS MADE BY THE BOARD OF DICRECTOR FOR UP TO FIVE YEARS UNDER CERTAIN CONDITIONS, WHERE THE PUBLIC INTEREST MAY SUPRESEDE THE BANK’S REQUIREMENTS TO PROTECT THE INTEREST OF DEPOSITORS.
[3] THIS IN SHORT BRINGS TO AN END - THE SYSTEM OF COOPERATIVE BANKS, BEING MANIPULATED BY MIGHTY POLITICIANS FOR THEIR OWN BENEFITS BY GETTING HEFTY AMOUNTS AS LOANS, UNDER VARIOUS REASONS, WILLFULLY DEFAULTING AND NOT PAYING BACK TO THE BANK AT ALL, AND SINCE THE MANAGEMENT IS ANSWERABLE ONLY TO THE REGISTRAR OF THE COOP SOCIETIES, WHO IS HIMSELF ON GOVT. JOB, EVERYTHING IS WASHED OFF REGULARLY. IN THE BARGAIN, THE DEPOSITORS ARE LYNCHED OF THEIR DEPOSITS, WHEN SUCH BANKS COLLAPSE OVER A PERIOD OF TIME. -
[4] While over the past 20 years, 430 cooperative banks were de-licenced and were forced to liquidate , - resulting a huge loss to the depositors. Even CURRENTLY 277 URBAN COOP BANKS ARE REPORTING LOSSES, AND 105 OTHERS ARE UNABLE TO MEET THE MINIMUM REGULATORY CAPITAL REQUIREMENTS
[5] Bringing coop banks under the RBI UMBRELLA will fortify them by increasing professionalism, accountability – audition compulsions, access to capital, improving governance and ensuring sound banking practices as per RBI guidelines. RBI will also monitor the qualifications and contributions of the BOARD OF DICRECORS, AND APPOINTMENT OF THE CHAIRMAN OF THE BOARD TOO. Apart from their commitment and sincerity to run the banking business within the framework of RBI guidelines totally.
[6] COMPULSARY ANNUAL AUDITING IN LINE WITH RBI GUIDELINES HAS BECOME A NECESSARY REGULATORY MECHANISM, to keep a check on bank’s business practices and effectiveness of Revenue management too.
[7] COOP BANKS have now, a liberty to recover their DUES FROM DEFAULTERS, WITHOUT HAVING TO DEPEND ON MORATORIUMS ETC, AT THE SAME TIME INTERESTS OF DEPOSITORS ARE WELL PROTECTED NOW. IT highlights the system of EASE OF DOING BUSINESS FOR COOP BANKS . AT THE SAME TIMES BEING GUIDED BY RBI AND ITS RULE BOOKS ETC, IT REDUCES THE BURDEN ON COOP BANKS TO RESORT TO TEDIOUS PROCEDURES AT VARIOUS COURTS FOR THEIR RECOVERIES.
[8] On the brighter side, NOW, THE COOP BANKS will be able to issue EQUITY SHARES, PREFERENCE SHARES, AND SPECIAL SHARES to raise funds and capital based assets. At the same time they can also issue UNSECURED DEBENTURES, BONDS OR OTHER SECURITIES with maturity of 10 or more years , bringing in more investments in to its capital base.
SO, THE MORAL OF THE STORY :
Many mighty politicians all over the contry, like SHARAD PAWAR, AJIT PAWAR AND FAMILY, CHHAGAN BHUJBAL, AKHILESH YADAV, LALLOO, BADALS , etc etc. who used to manipulate such rural and Urban coop banks, as their own private limited companies, are now deprived of their hitherto privileged say in running such coop banks, behind the screens, for their own and family’s benefits , while equally taking advantages of ambiguous laws, in acquiring a huge sum of amount as loans years after years, systematically defaulting repayments, accounts manipulations, and even dictating on selection of their on puppets on the BOARD OF DIRECTORS, AND EVEN CHAIRMAN, to such banks, who in turn repay them by favors unabated.
**So, now, don’t be surprised, if all those named as above, now plan and retaliate by staging *ANTI GOVT RALLIES, MORCHAS, DHARNAS, AND EVEN ARSON & VIOLENCE – in and for ANY REASONS, EVEN TRIVIAL ENOUGH TOO. Of course, the FARM REFORM BILL IS A READY REASON FOR THIS UNREAST, EXACTLY ON THE SAME LINES AS THAT OF CAA PROTESTS. Not to forget the STORMS IN TEA CUPS TO BE CAUSED BY THE #LEUTEANS, #PRESSTITUTES, AND #LIBTARDS of India.
Comments
Post a Comment