1,540 cooperative banks with assets of over Rs 4 lakh crore to be brought under RBI’s supervision
New Delhi | Jagran Business Desk: In a major relief for the depositors of cooperative banks across the country, over 1,500 urban and multi-state cooperative banks will be brought under the supervisory power of the Reserve Bank of India (RBI), said Union Minister Prakash Javadekar on Wednesday.
Information and Broadcasting Minister Prakash Javadekar while briefing media about the Cabinet decisions today said that the urban cooperative banks and multi-state cooperative banks will be brought under the RBI supervision process applicable to commercial banks.
"Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India (RBI); RBI's powers as they apply to scheduled banks will apply for cooperative banks as well," Javadekar said at a video press conference, as reported by news agency ANI.
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The minister further said that decision has been aimed at providing assurance to more than 8.6 crore depositors in the cooperative banks across the country. He also said that the money, amounting to Rs 4.84 lakh crore, of the depositors will now stay safe.
"The decision to bring 1,540 cooperative banks under RBI's supervision will give an assurance to more than 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe," he added.
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Prakash Javadekar also informed that the Union Cabinet has also approved the scheme for interest subvention of 2 per cent to Shishu loan category borrowers under Pradhan Mantri Mudra Yojana, outstanding as on March 31, 2020, for one year to eligible borrowers."
The Minister also said that the Union Cabinet has approved the declaration of Kushinagar Airport in Uttar Pradesh as an international airport.
There are about 1,482 crore urban cooperative banks and 58 multi-state co-operative banks with a depositors base of about 8.6 crore. The decision assumes significance amid lakhs of depositors facing problems after a scam in the multi-state Punjab and Maharashtra Cooperative Banks.
Earlier, the Cabinet had approved amendment to Banking Regulation Act to strengthen cooperative banks and avoid PMC Bank like crisis.
(With ANI, PTI Inputs)
Posted By: Talib Khan