Cooperative banks to be supervised by Reserve Bank of India

The Central government has decided to bring 1,482 urban cooperative banks and 58 multi-state cooperative banks, under the supervisory powers of the Reserve Bank of India (RBI).

Prakash Javadekar, Minister of Information and Broadcasting (I&B) said after a meeting of Union Cabinet today (June 24) that the RBI’s powers as they apply to the scheduled banks will now also apply to cooperative banks.

The minister added that the decision to bring 1,540 cooperative banks under RBI’s supervision will give an assurance to over 86 million depositors in these banks that their money amounting to almost ₹4.84 trillion will stay safe.

In the meeting, the Union Cabinet approved the establishment of the Animal Husbandry Infrastructure Development Fund. The government will provide three per cent interest subvention to eligible beneficiaries, according to Union Minister Giriraj Singh’s announcement.

Approval was also being granted to the extension of tenure of the commission constituted under Article 340 of the constitution to study the issue of sub-categorisation within the Other Backward Classes (OBC), by six months, upto January 31, 2021.

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The Union Cabinet has approved a scheme for interest subvention of two per cent to Shishu loan category borrowers under the Pradhan Mantri Mudra Yojana, outstanding as on March 31, for one year to the eligible borrowers. Javadekar added that the cabinet has also approved the declaration of the Kushinagar airport in Uttar Pradesh as an international airport.