The Banking Regulation Amendment Bill, 2020 to strengthen cooperative banks was introduced in Lok Sabha. The Bill proposes to keep certain types of agricultural credit societies outside the ambit of the 1949 Banking Regulation Act. In addition, it requires the Reserve Bank of India to consult State Governments before superseding the board of directors of State-registered cooperative banks.
Amid disturbances, a clause-by-clause voting on the Direct Tax Vivad se Vishwas Bill, 2020 was taken up in Lok Sabha. However, the House adjourned without passing the Bill.
Lok Sabha was scheduled to discuss the Demand for Grants for the Ministry of Social Justice and Empowerment. Some highlights from our analysis:
- The Social Justice and Empowerment Ministry has been allocated Rs.11,429 crore this year. This is 0.37% of the total Union Budget.
- From 2014-15 to 2017-18, the Ministry saw underutilisation of the funds allocated to it.
- The Standing Committee on Social Justice and Empowerment (2016-17) noted that a possible reason for the underutilisation could be lack of expenditure by the North East states.
- The Report noted that this could be caused by failure of these states to send utilisation certificates within time leading to funds lapsing. Another reason could be low demand for funds from these States.