The central government will also bring cooperative banks under the purview of the Reserve Bank of India (RBI). Banking law will be changed for this. After this, cooperative banks will also be audited. For this, the Union Cabinet on Wednesday approved the draft of a bill to change the existing banking law. The Reserve Bank will have the right to take over the management of the bank in case of a disturbance. RBI will implement it in a phased manner.

Information and Broadcasting Minister Prakash Javadekar, giving information about the decisions of the cabinet, said that a bill will be brought in Parliament in two-three days to amend the Banking Regulation Act. This will bring the cooperative banks under the purview of the Reserve Bank, while the administrative functioning will continue to be under the Cooperative Societies Act as before. This change is being made to protect the interests of depositors. With this, all instructions of RBI will also be applicable to cooperative banks.

1540 co-operative banks in the country

There are 1540 cooperative banks in different categories in the country. Of these, eight crore 40 lakh account holders have more than Rs 5 lakh crore deposits. After coming under the purview of RBI, account holders of cooperative banks will also be able to get a guarantee of up to five lakh rupees on deposits.

The central government will also bring cooperative banks under the purview of the Reserve Bank of India (RBI). Banking law will be changed for this. After this, cooperative banks will also be audited. For this, the Union Cabinet on Wednesday approved the draft of a bill to change the existing banking law. The Reserve Bank will have the right to take over the management of the bank in case of a disturbance. RBI will implement it in a phased manner.

Information and Broadcasting Minister Prakash Javadekar, giving information about the decisions of the cabinet, said that a bill will be brought in Parliament in two-three days to amend the Banking Regulation Act. This will bring the cooperative banks under the purview of the Reserve Bank, while the administrative functioning will continue to be under the Cooperative Societies Act as before. This change is being made to protect the interests of depositors. With this, all instructions of RBI will also be applicable to cooperative banks.

1540 co-operative banks in the country

There are 1540 cooperative banks in different categories in the country. Of these, eight crore 40 lakh account holders have more than Rs 5 lakh crore deposits. After coming under the purview of RBI, account holders of cooperative banks will also be able to get a guarantee of up to five lakh rupees on deposits.