Cooperative banks to come under Reserve Bank regulation: Prakash Javadekar

Cooperative banks to come under Reserve Bank regulation: Prakash Javadekar

RBI will regulate cooperative banks across the country

A big decision on the cooperative bank taken by Narendra Modi cabinet on Wednesday.

There are more than 1540 cooperative banks in India and more than 8.6 crore people have deposited their money in cooperative banks. At present, the cooperative banks have a deposit of Rs 5 lakh crore.

Prakash Javadekar, Union Minister informed during a press conference at National Media Centre that the Cooperative banks to come under Reserve Bank regulation and Reserve Bank of India (RBI) will regulate all cooperative banks across the nation.

At present, nationalized, commercial, and scheduled banks regulate under Reserve Bank of India (RBI), Prakash Javadekar added. The decision was taken during the Union Cabinet meeting. He also said that RBI norms will apply only to the cooperative banks. Reserve Bank of India (RBI) will issue guidelines in this regard.

Nirmala Sitharaman, Finance Minister of India said that a good system is being created to ensure the safety of depositors’ money. The government has proposed to increase the insurance cover the existing Rs 1 lakh to Rs 5 lakh on the deposits in banks from in the budget. in the budget, the government has also announced to sell its stake in IDBI Bank.