Cooperative Banks to come under the ambit of RBI

To protect the depositors in these financial institutions, the Centre has decided to bring urban and multi-state cooperative banks under the directions of the RBI.

The Union Cabinet decided to initiate the move via the Ordinance route in a meeting held on Wednesday. This move is supposed to bring 1482 urban and 58 multi-state cooperative banks under the supervisory powers of the RBI.

According to Prakash Javedkar, the Union Information and Broadcasting Minister, this move will bring an assurance to about 8.6 crores depositors in these banks that their money will stay safe.