Cooperative Bank under RBI for the protection of depositors: FM Sitaraman

 Cooperative Bank under RBI for the protection of depositors: FM Sitaraman

New Delhi: The government is giving priority to the interests of cooperative bank depositors.  With this in mind, Finance Minister Nirmala Sitharaman said in a debate on the Banking Regulation Amendment Bill 4-2020 that the management of cooperative banks is being brought under the purview of the Reserve Bank.  He added that the new measures would not reduce the capacity of the Registrar of Cooperative Societies.  On the other hand, it is planned to regulate the banking activities of cooperative banks.  On June 26, the government issued an ordinance.  The new bill appears to have been approved by the Lok Sabha.  Under the new Banking Regulation Act, co-operative banks will be included in the Reserve Bank.  These include Urban Cooperative Bank and Multi-State Cooperative Bank.  There are currently 1482 Urban Cooperative Banks and 85 Multi-State Cooperative Banks operating in the country.  According to Sitaraman, there are 8.6 crore depositors in these banks.