Sharad Pawar writes to PM Modi on amendments in Banking Regulation Act, highlights 3 inconsistencies

Nationalist Congress Party (NCP) president Sharad Pawar on Saturday wrote to Prime Minister Narendra Modi and pointed out certain inconsistencies and the resulting legal inefficacy of normative provisions of the Banking Regulation Act.

Nationalist Congress Party (NCP) president Sharad Pawar on Saturday wrote to Prime Minister Narendra Modi, pointing out certain inconsistencies and the resulting legal inefficacy of normative provisions of the Banking Regulation Act.

In his letter, the NCP chief stated that Banking Regulation Act has been amended to protect the interests of the depositors of co-operative banks and to strengthen the co-operative banks by increasing professionalism, but there are certain inconsistencies and the resulting legal inefficacy of normative provisions of the Act that are in conflict most specifically with the 97th Constitutional Amendment, State Co-operative Societies Acts and with the co-operative principles.

Pawar urged Modi to ensure that the cooperative principles laid down in the Constitution should not be sacrificed at the altar of over-zealous regulations in the banking sector.

"The Amended Act overrules various provisions of the Co-operative Act in regard to the formation of the Board and election of Chairman, the appointment of Managing Director etc. by holding a caveat in terms of such appointments," Pawar said in the letter to Modi. "I reiterated in the letter that the aims and objectives of the Amended Act are well-intentioned, and many provisions are necessary. Erring Board and Management must definitely be acted upon strictly and the depositors' interests should be protected, but at the same time it should be ensured that while doing so, the Co-operative Principles laid down in the Constitution are not sacrificed at the altar of over-zealous regulation," his letter further read.

Earlier on Saturday, Pawar met Prime Minister Narendra Modi in New Delhi. The meeting came ahead of the monsoon session of Parliament beginning July 19.

On Friday, the newly-appointed leader of Rajya Sabha and Union Minister Piyush Goyal held consultations with former Prime Minister Manmohan Singh, NCP chief Sharad Pawar, and senior Congress leader Anand Sharma ahead of the Monsoon Session of Parliament, government officials said.

( With inputs from ANI )