Banking Regulation (Amendment) Act, 2020
Bringing Cooperative Banks Under Fuller RBI Supervision
The Banking Regulation (Amendment) Act, 2020 extended the RBI's supervisory powers over cooperative banks, including urban and multi-state cooperative banks, closing supervisory gaps that had been exposed by cooperative bank failures.
- Extended RBI's power to supersede the board of directors of all cooperative banks (previously limited to multi-state cooperative banks) for up to five years, appointing an administrator in the interim
- Empowered the RBI to prepare schemes of reconstruction or amalgamation for cooperative banks without a prior moratorium requirement
- Cooperative banks remain under a structure often described as "dual control": the RBI regulates banking functions (licensing, capital, prudential norms) while the Registrar of Cooperative Societies (state or central, depending on whether the bank is single-state or multi-state) regulates the cooperative-society aspects (management elections, membership, by-laws)
● Tracked since July 27, 2026 · last seen August 07, 2026 · updates as the daily brief publishes
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