Just the first step

Co-operative banks need intervention at multiple levels

The Union Cabinet on Wednesday decided to issue an Ordinance to give more powers to the Reserve Bank of India (RBI) to supervise co-operative banks. The supervisory norms, which are applicable to commercial banks, will also apply to urban co-operative and multi-state cooperative banks. The decision will affect 1,482 urban and 58 multi-state co-operative banks. Among other things, the RBI will now be able to decide the eligibility criteria for board members and approve the appointment of the chief executive officer. This is a welcome move as revised norms are expected to improve the functioning of these banks. After the