The amendment had got approval from Lok Sabha on September 16. The bill, which comes in the backdrop of the PMC Bank scam, seeks to strengthen cooperative banks by increasing their professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.

"During the COVID period many cooperative banks have come under stress. Their finances are being closely monitored by the regulator RBI," Sitharaman said. Justifying the need for the amendments, the minister said the government was able to quickly resolve the troubled Yes Bank as it was governed by commercial bank rules, but the resolution to the PMC Bank crisis is yet to be found.

The upper house debated the bill amid several members boycotting proceedings till the suspension of eight MPs is revoked. As many as eight members of the Rajya Sabha were suspended on Monday after the government brought a motion in this regard which was passed by the House by voice vote.

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