Bills on crypto, banking privatisation deferred, both houses adjourned sine die

It is official now. Two key bills, one for the regulation of crypto and the second for the privatisation of public sector banks, have been deferred. 

Both among 26 new bills were listed for introduction, consideration and passage during the winter session of the Parliament, which was scheduled till November 23. However, both the houses adjourned sine die a day before the scheduled day.

This is the second time a bill titled ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,’ has been deferred. Earlier, it was also listed for the budget session but could not be introduced. The government is keeping mum on why the bill has been deferred. Also, there is no confirmation yet that the bill be introduced in the budget session or part of the budget exercise considering taxation

According to Lok Sabha Bulletin, the purport of the bill is “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”  

Meanwhile, sources said multiple views on crypto—one view led by Reserve Bank of India arguing for a complete ban. The second set of views does not support the total ban. Instead, it advocates categorising crypto as an asset class and appointing SEBI as a regulator. Then there is the issue of taxation - taxing gain under Income Tax law and services under GST law. It seems the government is yet to evolve a consensus on this resulting in the bill’s postponement.

Banking Bill

Another bill titled ‘The Banking Laws (Amendment) Bill, 2021’ also could not see the light. The bill intends to amend ‘Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 and incidental amendments to Banking Regulation Act, 1949 in the context of Union Budget announcement 2021 regarding privatisation of two Public Sector Banks. 

The government has repeatedly said that consideration of various issues related to disinvestment, which inter alia, includes selecting the bank(s) is entrusted to the Cabinet committee designated for this purpose. The decision by the Cabinet committee concerned for privatisation of PSBs has not been taken in this regard. It seems that any decision in this regard is more political than economic, and as States such as UP and Punjab are going for poll soon, the bill has been deferred.

Overall Productivity

Meanwhile, Lok  Sabha Speaker Om Birla said that the Lower House had 18 sittings during the session, which saw business transacted for 83 hours and 12 minutes. However, over 18 hours were lost on account of disruption. “Overall productivity was 82 per cent,” he said. Further, 12 government bills were introduced, and nine got passed.

The Upper House clocked productivity of 47.90 per cent during the 18 sittings of the Winter Session. Out of the total scheduled sitting time of 95 hours 06 minutes, the House could discharge business only for 45 hours 34 minutes. “This Session’s productivity of 47.90 per cent is the fifth lowest among that of the 12 Sessions presided over by Chairman Venkaiah Naidu over the last four years. A total time of 49 hours 32 minutes has been lost due to persistent disruptions and forced adjournments. The time lost amounts to 52.08 per cent of the available time,” according to an input from the Rajya Sabha secretariat.

The Question Hour has been the worst hit, with 60.60 per cent of the total allotted time was lost in disruptions. Question Hour could not be taken up on seven of the 18 sittings.

In his valedictory address, Naidu expressed his concern and unhappiness over the functioning of the House during the Winter Session. The Opposition was agitating during the session over the suspension of 13 MPs, not allowing discussion on the bill to repeal three farm laws and pushing the passage of Bills such as the bill to link voters’ list with Aadhar without sending it to a Standing Committee.

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