Cooperative Banks can't use the term Bank anymore (Banking Regulation Act Amendment 2020)

BR Act Amendment 2020

 

Co-operative Societies without a banking license should not use the term bank from now on. The President of India signed the Banking Regulation Amendment Ordinance 2020 27th June 2020. 

The ordinance is for a period of 6 months. In the meantime the law of Parliament must be passed.

PACS in the country and cooperative societies that provide long-term finance for agricultural development should not conduct cheque transactions. Also, the terms bank, banking and banker should not be used. This is the most important amendment to Section 3 of the Act.

The Act would affect all service co-operative banks in the state. The name of the bank cannot be used and cheque transactions are not possible.

Primary agricultural credit societies in the country should not use the term bank anymore. The law came into force with the signing of the 2020 Banking Regulation Amendment Ordinance by the President of India. 

The ordinance was signed by President Ramnath Kovind after the earlier bill was passed in Parliament and could not be enacted. It has legal validity for a further six months.

Disclaimer: These are informative posts and include the personal opinions of the author. News details from Moonamvazhi & prsindia