Just the first step

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