Earlier to the promulgation of ordinance relating to amendments to Banking Regulation Act,1949 in June 2020, only certain provisions of B R Act,1949 was made applicable to Co-operative Banks by amending section 56 of B R Act,1949.CEOs of UCBs are familiar with those provisions. As a matter of fact they were rigorously complied with since a long time.
The Co-operative Character of the UCBs was not very much effected in UCBs. The regulation relating to management of UCBs vested with RCS and banking related activities were regulated by RBI. The dual control was predominant. The Board of Directors had more say in the management of UCBs.
CEOs of UCBs were appointed as per the provisions of KCS Act,1959 and KSS Act. CEOs so appointed were vested with powers under the provisions of section 29G of KCS Act, Rule 14-AM of KCS Rules and the Bye Laws of the respective UCBs.
In the light of the amendments to Banking Regulation Act,1949 RBI is now vested with more powers to control the management of UCBs also. The powers vested with RCS has now been diluted. Still only some provisions of KCS/KSS Act applies to UCBs like election of Board, amendment of Bye Laws, filing of disputes etc
There are many amendments to various sections of Banking Regulation Act,1949 brought into effect through an ordinance promulgated in June 2020.It will take some time for the MDs/CEOs to understand the various provisions of the Act in its entirety. Some important sections will be dealt with in future for the benefit of the reader.