New Delhi, Sep 14 (IANS): The Centre on Monday withdrew the Banking Regulation (Amendment) Bill, 2020 on first day of the Monsoon Session.

Finance Minister Nirmala Sitharaman moved a proposal in the Lok Sabha to withdraw the Bill saying she came with the Bill on March 3 this year and subsequently an ordinance was passed.

She said the Bill is being withdrawn to add few things giving Reserve Bank of India a chance to be able to restructure distressed cooperative banks, which are in serious need.

Later the House gave its nod to withdraw the Bill which was introduced in the lower House on March 3 during the Budget Session to amend the Banking Regulation Act, 1949.

Earlier, Revolutionary Socialist Party (RSP) leader N.K. Premchandran opposed the Bill when it was moved by Sitharaman for its withdrawal, saying an ordinance is promulgated only in extraordinary situations when the government wants some legislation but now the Finance Minister has come to withdraw the Bill.

"...When you make a legislative proposal, a long term interest of the society has to be taken into account. You brought the Bill without applying the legislative wisdom. Lack of seriousness is seen in part of the government in the legislative process. This is a clear case of misuse of Constitutional power of Article 123. I oppose the Bill."