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