Cooperative banks to be supervised by RBI; govt to bring an ordinance

All govt banks, including urban and multi-state cooperative banks will be brought under the supervisory powers of the RBI

The Union government has decided to bring 1,482 urban cooperative banks and 58 multi-state cooperative banks, under the supervisory powers of the Reserve Bank of India, said I&B minister Prakash Javadekar after a meeting of the Union Cabinet earlier today.

The RBI's powers as they apply to the scheduled banks will also apply to cooperative banks, said the minister.

Union government will bring an ordinance to put cooperative banks under RBI supervision, announced the I&B minister.

The decision to bring 1,540 cooperative banks under RBI's supervision will give an assurance to more than 86 million depositors in these banks that their money amounting to Rs 4.84 trillion will stay safe, he added.

Union Cabinet also approved establishment of Animal Husbandry Infrastructure Development Fund. The Union government will provide 3% interest subvention to eligible beneficiaries, announded Union Minister Giriraj Singh

Today's meeting of the Union Cabinet also saw approval being granted to the extension of tenure of the Commission constituted under Article 340 of the constitution to examine the issue of sub-categorisation within Other Backward Classes, by 6 months - upto January 31, 2021.

The government on Wednesday decided to provide 2 per cent interest subvention to borrowers under the 'Shishu' category of the flagship Pradhan Mantri MUDRA Yojana (PMMY).

Under the Shishu category, collateral free loans of up to Rs 50,000 are given to beneficiaries.

The Union Cabinet approved the scheme for interest subvention of 2 per cent to Shishu loan category borrowers under PMMY, outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers, Information and Broadcasting Minister Prakash Javadekar said.

The PMMY was launched by Prime Minister Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to non-corporate, non-farm small/micro enterprises.

These loans are classified as MUDRA loans under PMMY. These loans are given by commercial banks, RRBs, small finance banks, MFIs and NBFCs.

The I&B minister also said that the Union Cabinet has approved the declaration of Kushinagar Airport in Uttar Pradesh as an international airport.