The Dossier

Government Passes Ordinance Amending The Banking Regulation Act

In the 11th ordinance since March 23, the day the Parliament was adjourned, was passed on June 24, amending the Banking Regulation Act of 1949. The ordinance seeks to extend “powers already available with RBI in respect of other banks” to multi-state and urban co-operatives, a development aimed at providing comfort to depositors and prevent a repeat of PMC Bank like scams.

The ordinance suspends these sections on grounds that:

1. The pandemic has created uncertainty and a stressful environment for business for reasons beyond their control
2. The nationwide lockdown has added to the disturbance of normal business operations and activities.

The President of the country will have the power to promulgate the ordinance under  Article 123 of the Constitution. If both houses of parliament are not in session and if the President is “satisfied that circumstances exist which render it necessary for him to take immediate action”, he can pass an ordinance which carries the full force of the law.

The ordinance, which is an emergency power, has been used by the government on multiple occasions amid ongoing pandemic. The two ordinances before this were introduced as a part of the Covid relief packages to farmers.

The Essential Commodities (Amendment) Ordinance, 2020, amending the Essential Commodities Act, 1955, extends powers of the central government to control “the production, supply, distribution, trade, and commerce in certain commodities.” This aims to increase the farmers’ income during these tough times.

Several other ordinances in the field of health and one amending the Homoeopathy Central Council Act, 1973 was passed by the government before.

The salary of MP’s was also cut down by 30% as an initiative to help those in need and fight covid through a separate ordinance. The fate of these ordinances will only be known once a Parliament session starts.

Another notable ordinance passed by the government was the Epidemic Diseases (Amendment) Ordinance, 2020. This gave the central government power to regulate the detention of any person to travel by any means of transport. The ordinance also provides protection to health care professionals against acts of violence and punishment to those who commit such acts. займ деньги в долгчастный займ под расписку красноярскзайм у частного лица без предоплат самый лучший займзайм на яндекс без привязки картыджет мани займ

Anushree J

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