Categories: Business

Cooperative banks to be supervised by RBI says government

Photo: PTI (FILE)

RBI to supervise cooperative banks

new Delhi. The government said on Wednesday that all cooperative banks and multi-state cooperative banks will be brought under the supervision of the Reserve Bank. The move of the government is aimed at giving satisfaction and security to the depositors of cooperative banks. Giving information to reporters after the Union Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar said that the urban cooperative banks and multi-state cooperative banks will be brought under the Reserve Bank's oversight for better operation of the Reserve Bank. Till now only commercial banks have been under the Reserve Bank's inspection, but now the Reserve Bank will also inspect the cooperative banks. Javadekar said, "The depositors will get confidence that their money is safe." He said that an ordinance would be issued soon in this regard.

In total there are 1,482 urban cooperative banks and around 58 multi-state cooperative banks in the country with 8.6 crore customers. The government's move is significant in the sense that scams have come to light in several co-operative banks in the recent past and this has caused a lot of trouble to bank depositors. The scam in the Punjab and Maharashtra Co-operative Bank has been in the news recently. The depositor customers of the bank had to face a lot of trouble due to the ban on the functioning of the bank after the scam. Earlier, the Cabinet approved amendment in the Banking Regulation Act to strengthen cooperative banks and avoid a crisis like PMC Bank.

This post was published on June 24, 2020 6:14 pm

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