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India

COVID Pandemic Hits Cooperative Banks In India Hard, 277 In Poor Condition

Finance Minister Nirmala Sitharaman while presenting the Bill said that it would help in safeguarding interest of the co-operative bank depositors'

TNA Bureau

TNA Bureau

NEW DELHI || The Coronavirus pandemic has adversely affected the financial health of co-operative banks in India, union finance minister Nirmala Sitharaman said on Wednesday. She told the Lok Sabha that the financial health of 277 urban co-operative banks was in a poor condition.

The Finance Minister added that out of these, 105 co-operative banks are unable to maintain even minimum regulatory balance whereas 47 have reported negative net worth.

She also added that the amendments to section 3, 45 and 56 of the Banking Regulation Act, 1949, proposed in the current bill seeks to bring parity in terms of rules and regulations in co-operative banks as applicable in the commercial banks.

She was speaking in the Lok Sabha while presenting the Banking Regulation (Amendment) Bill, 2020, which replaces the Banking Regulation (Amendment) Ordinance which was promulgated on June 26 earlier this year.

Finance Minister Nirmala Sitharaman while presenting the Bill said that it would help in safeguarding interest of the co-operative bank depositors' and asserted that it will protect depositors’ interest in similar situations. The Bill was passed later.

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