New Delhi (NVI): The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved an ordinance to bring 1,482 urban and 58 multi-state cooperative banks under the supervision of Reserve Bank of India (RBI).
This ordinance is passed to ensure that depositors’ money is safe. Union Minister Prakash Javadekar said while addressing a media briefing that depositors will get protection and benefit out of it.
He further said, “Bringing these 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.”
These banks will come under the supervision of the RBI with immediate effect from date of President’s approval on the ordinance.
Currently, cooperative banks are governed by dual control of cooperative societies as well as the RBI. While the role of cooperative society includes incorporation, registration, management, recovery, audit, RBI is responsible for regulatory functions.