Published 16:22 IST, June 24th 2020
Union Cabinet approves ordinance to bring 1,540 co-operative banks under RBI supervision
Prakash Javadekar on Wednesday announced that over 1,500 UCBs and multi-state co-operative banks will be brought under the supervisory power of the RBI
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The Modi government has decided to bring Urban Co-operative Banks (UCBs) and Multi-State Co-operative Banks under the governance of the Reserve Bank of India (RBI). Union Minister Prakash Javadekar on Wednesday announced that over 1,500 UCBs and multi-state co-operative banks will be brought under the supervisory power of the central bank.
"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's powers as they apply to scheduled banks will apply for cooperative banks as well," Javadekar told reporters through video conferencing.
#Cabinet approves an ordinance to bring 1,482 urban and 58 multi state cooperative banks under the supervision power of @RBI. It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe: Union Minister @PrakashJavdekar #cabinetdecisions pic.twitter.com/1voDml0Iiz
— PIB India (@PIB_India) June 24, 2020
Assurance of safety to depositors
He said the to bring those 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. The Union Cabinet has approved an ordinance in this regard and with immediate effect from the date of President’s nod on the ordinance, the co-operative banks in the country will come under the RBI's supervision.
Prakash Javadekar further said that the Union Cabinet has approved a scheme "for interest subvention of 2% to Shishu loan category borrowers under Pradhan Mantri Mudra Yojana, outstanding as on March 31, 2020, for one year to eligible borrowers."
(Photo Credit: PTI)
16:22 IST, June 24th 2020