Banking Regulation Bill in Lok Sabha faces Oppn heat

While introducing the Banking Regulation (Amendment ) Bill in Lok Sabha on Monday, Finance Minister Nirmala Sitharaman said it was applicable to those cooperative banks which deal with 'bank, banker and banking.'

Opposition leaders, including Shashi Tharoor of the Congress and Saugata Roy of the Trinamool Congress, opposed the bill. Tharoor said the bill is an encroachment on federalism, while Roy claimed it attacks state rights.

The Finance Minister, however, rejected the charge, asserting that state cooperative laws are not being touched and that the proposed law seeks to bring these banks with same regulations that are applicable to other banks.