Big decision on co-operative banks, now under RBI
The co-operative banks in India have a large base and are very popular in rural areas. In the cabinet meeting, it has been decided to bring it inside the Reserve Bank. With this decision, 1540 co-operative banks have come under the purview of RBI.
Highlights
- Modi cabinet’s big decision regarding co-operative banks
- The decision was taken to bring co-operative banks under RBI
- 1540 co-operative banks of the country are now under RBI’s purview
- 8.6 crore depositors, their total deposits 4.84 lakh crore
A big decision has been taken in the cabinet meeting regarding the co-operative bank. 1482 Urban Co-operative Banks and 58 Multi-State Co-operative Banks have been brought under the Reserve Bank. After being brought under the RBI, the way the Reserve Bank’s order and directive apply to scheduled working banks, they will now also apply to the co-operative banks. This information has been given by Union Minister Prakash Javadekar.
8.6 crore are depositors
Javadekar said that co-operative bank has a huge scope in India. These 1540 co-operative banks have 8.6 crore depositors and their total deposits are close to 4.84 lakh crore. Depositors will gain confidence in these after coming under the Reserve Bank.
The decision to bring 1,540 cooperative banks under RBI’s supervision will give an assurance to more than 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe: Union Minister Prakash Javadekar https://t.co/IAy0GN98el
— ANI (@ANI) June 24, 2020
Apart from this, Javadekar said that the beneficiaries of the largest small bank loan ie Mudra loan up to 50000, will get a discount of 2 percent in interest. 9 crore 35 lakh people will get relief from this decision under the Shishu Loan Scheme. It is effective from 1 June 2020 and will continue till 31 May 2021.
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