Urban, multi-State coop banks to come under RBI supervision
Currently, urban and multi-state co operative banks are under dual regulation of RBI and Registrar of Cooperative societies.
The ordinance passed by the cabinet brings these banks completely under the regulations of RBI.
The urban cooperatives and multi-State cooperative banks, which are 1,540 in number and have a depositor base of 8.6 crore, who have saved ₹4.84 lakh crore.
The move comes after several instances of fraud and serious financial irregularities, including the major scam at the Punjab and Maharashtra Co-operative (PMC) Bank last year.
These cooperatives are brought under supervision same as they of scheduled banks.
Depositors will get greater security under the RBI supervision.
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