About 1,500 Cooperative banks to be brought under RBI’s control

The government announced that all cooperative and multi-state cooperative banks will be brought under the supervision of Reserve Bank of India (RBI). This initiative which will be effective on 1,540 such banks, aims at providing comfort to their depositors, Union Minister Prakash Javadekar said in a press briefing, following a Cabinet meeting. The decision comes months after a scam hit the Punjab and Maharashtra Cooperative (PMC) Bank previous year.

“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,” said Union Minister Prakash Javadekar.

Government said that qualifications would be set for appointing CEO of cooperative banks and the RBI permission will be sought before appointment as followed in case of commercial banks.