To assure that depositors money are protected, the Central Government today concluded to bring all urban and multi-state co-operative banks under the supervision of Reserve Bank of India (RBI) through an ordinance. This was declared by Union information and broadcasting minister Prakash Javadekar during a virtual press conference on Wednesday.
“In a landmark decision, the 1,482 urban cooperatives banks and 58 multi-State cooperative banks, which are 1,540 in number and have a depositor base of 8.6 crore, who have saved ₹4.84 lakh crore, a huge amount. They all have been brought under RBI supervision process, which is applicable to scheduled banks. Depositors will get more security because of today’s decision,” Information and Broadcasting Minister Prakash Javadekar told journalists after the meeting.
These banks will come under the surveillance of RBI with immediate effect from the date of the President’s authorization on the ordinance.
The motion to bring this urban and multi-State co-op. banks under the supervision of the RBI comes after the Punjab and Maharashtra Cooperative (PMC) Banks major fraud on the previous year. In September, the RBI was urged to supersede the PMC Bank’s board and impose strict restrictions.
“I am very sure when this announcement was made, people have welcomed it, and depositors will get protection and benefit out of it,” Mr. Javadekar added regarding the ordinance approved by Cabinet.
“The Union Cabinet has approved the scheme for interest subvention of 2% to Shishu loan category borrowers under flagship (Pradhan Mantri MUDRA Yojana) PMMY, for a period of 12 months to eligible borrowers. This relief had been announced as part of the Aatmanirbhar Bharat package last month.” Mr. Javadekar told in the press conference.
Under the Shishu category, collateral-free loans of up to ₹50,000 will be given to beneficiaries.
Good for us I guess….
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