Modi cabinet's big decision, RBI will regulate all cooperative banks

HIGHLIGHTS: The Modi cabinet has taken a major decision on the cooperative bank on Wednesday. Union Minister Prakash Javadekar said that the Reserve Bank of India (RBI) will regulate all cooperative banks.

In fact, in the last few days, there have been cases of fraudulent activities in the co-operative bank from many parts of the country, after which the government was busy making a plan to stop such cases. The Punjab and Maharashtra Cooperative Bank (PMC BANK) case came to light last year. Then this bank was immediately taken over by RBI. Explain that there are about 1540 cooperative banks across the country. Earlier, RBI used to regulate private and government controlled banks.

Two big decisions taken in a week

Prakash Javadekar told in the press conference that two big steps have to be taken in a week for the depositors (who deposit money in bank account). RBI will now regulate the first co-operative bank. It will be implemented in a phased manner. At the same time, the budget has announced to increase the limit of deposit insurance from Rs 1 lakh to Rs 5 lakh. This decision will benefit 99 percent of the depositors. Apart from this, the government says that merger of public sector banks is a step in this direction. The government has announced to sell its stake in IDBI Bank in the budget. If the government believes that the fewer banks there are, the better the system will be.

Source: Web