New Delhi: The government on Wednesday said all cooperative banks and multi-state cooperative banks will come under the supervision of the Reserve Bank of India, a development aimed at providing comfort to depositors of these banks.
"Government banks, including 1482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of RBI," the minister said.
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He fuerther added that RBI's powers as they apply to scheduled banks will apply for cooperative banks as well.
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, Javadekar added.
The decision assumes significance amid lakhs of depositors facing problems after a scam in the multi-state Punjab and Maharashtra Cooperative Banks.
Earlier, the Cabinet had approved amendment to Banking Regulation Act to strengthen cooperative banks and avoid PMC Bank like crisis.
