Govt set to pass these 3 ordinances related to finance ministry in monsoon session of Parliament; all details here

In the upcoming monsoon session of Parliament, the government is all geared up to introduce three ordinances pertaining to Department of Financial Services, Ministry of Finance. According to sources, these relate to banking regulation act, pension fund regulatory and development authority act and factoring regulation act.

The banking regulation ordinance will be introduced to bring all the urban and multi-state cooperative banks under the regulation of Reserve Bank of India. It was promulgated by the government in June, 2020 to bring 1482 urban cooperative banks and 58 multi-state cooperative banks under the direct supervision of the central bank of India. These banks have over 86.4 million depositors and deposits of around Rs 5 lakh crore. This ordinance was promulgated on the back of money laundering case in Maharastra-based PMC Cooperative bank.

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The PFRDA ordinance aims to separate NPS Trust from PFRDA and to also bring all the employees of unorganized sector under its purview. Ordinance related to amendments in factoring regulation act seeks to permit all non-banking financial companies or NBFCs to give invoice credits to MSMEs against their supplies to larger firms. It will also allow NBFCs to directly participate on TReDs  platform. These measures will boost liquidity in the msme sector.

Besides these, three codes related to labour ministry are likely to get parliament nod in the forthcoming session. The three codes are on industrial relations, social security and occupational, health and safety (OCH). The monsoon session will begin on September 14 and end on October 1 without any gap in between.