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Maharashtra to come up with law to protect deposits in urban co-op banks

Maharashtra to soon come up with law to protect deposits in urban co-op banks

Press Trust of India  |  Mumbai 

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The government will come up with a law to protect small savers who have deposited up to Rs 1 lakh in urban (UCBs), a minister has said.

Most of the UCBs have small deposit amounts and savers are adversely affected whenever these banks face financial constraints, Cooperation Minister Subhash Deshmukh has said.

He was speaking at a meeting of representatives of UCBs in Pune on Thursday. The meeting was called to discuss measures to protect in such banks.

"up to Rs 1 lakh in UCBs will be protected with some legislation. The state government is working on it. We are working on some mechanism through the Cooperation Development Corporation. It would frame guidelines and rules for UCbs to bring some uniformity," Deshmukh said.

He said there are nearly Rs 25,000-crore in the urban in the state.

In the last 10 years, several UCBs have undergone financial crisis, especially after the Reserve Bank placed some of them under moratorium.

"The government will extend support to the UCBs as they cater to the weaker sections. We will work out some legislation for it," Deshmukh said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, August 26 2017. 23:05 IST