(a) whether the Government is aware that the proposed amendment to Banking Regulation Act 1949 to bring
Banking Cooperatives Societies at par with Commercial Bank, will destroy the very root of the autonomy of
the cooperative sector;
(b) whether it is not a fact that such amendment will encroach upon the rights of the State Government; and
(c) what steps the Government will take to set thing right, in the light of NCMP proposed on cooperatives?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a), (b) and (c):- The Banking Regulation (Amendment) and Miscellaneous Provisions Bill, 2003 was introduced
in the Parliament to amend Banking Regulation Act, 1949 to give greater operational flexibility to Reserve
Bank of India and to redefine its control over co-operative banks. National Common Minimum Programme (NCMP)
has referred to the need for making cooperatives, `democratic and autonomous`. In view of this and the
concerns expressed by certain State Governments, the Bill has been referred to the Reserve Bank of India
for revisiting the proposals taking into account both the regulatory issues as well as the concerns of
the Cooperative Credit Institutions.