Cabinet decides to bring Co-operative Banks under RBI through an Ordinance

RBI - Cabinet - Ordinance - Co-operative Banks - Taxscan

The Union Cabinet under the Chairmanship of Prime Minister Narendra Modi has decided to bring Co-Operative Banks under the Reserve Bank of India through an Ordinance.

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),” Javadekar said today. These banks will come under the supervision of RBI with immediate effect from the date of the President’s approval on the ordinance.

This was announced by Union information and broadcasting minister Prakash Javadekar during a virtual press conference.

During Budget 2020, Finance Minister Nirmala Sitharaman also announced that cooperative banks will be brought under the ambit of RBI. There are more than 8.6 crore depositors in over 1,500 urban and multi-state cooperative banks across the country. “Depositors’ money amounting to ₹4.84 lakh crore in the cooperatives banks will stay safe,” Javadekar said while announcing the decision.