India has over 1,500 cooperative banks. Together, they have a depositor base of 8.6 crore and at least ₹4.84Lcr ($65.8bn) is harboured with these banks.

Last week, the Lok has cleared an amendment bill granting the RBI more control over cooperative banks...thereby fundamentally altering the way these lenders would operate going forward.

To understand the significance of this legislation i.e. The Banking Regulation (Amendment) Bill, it is important to revisit the crisis that sparked it in the first place (remember PMC Bank?). And to understand what exactly has been ailing cooperative banks in India.

For a deep dive into the same, click link: https://transfin.in/the-banking-regulation-amendment-bill-2020-explained