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Cabinet decision: All urban co-operative banks, multi-state co-operative banks now under RBI

Union minister Prakash Javadekar says 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

twitter-logoBusinessToday.In | June 24, 2020 | Updated 15:49 IST
Cabinet decision: All urban co-operative banks, multi-state co-operative banks now under RBI
Union minister Prakash Javadekar

In a major decision, all government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, have been brought under supervisory powers of the Reserve Bank of India (RBI), the Union Cabinet, while promulgated an ordinance, decided on Wednesday.

After the decision, the RBI's powers, as they apply to scheduled banks, will apply for cooperative banks as well.

Union minister Prakash Javadekar said the decision to bring 1,540 cooperative banks under RBI's supervision would 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.

The Union Cabinet also approved the extension of tenure of the committee constituted to examine the issue of sub-categorisation within Other Backward Classes by 6 months up to January 31, Javadekar said.

The Union Cabinet also approved a scheme for interest subvention of 2 per cent to Shishu loan category borrowers under the Pradhan Mantri Mudra Yojana, outstanding as on March 31 for 12 months to eligible borrowers.

Among other announcements, Kushinagar Airport in Uttar Pradesh has been declared as an international airport. Besides, this the Cabinet approved the establishment of animal husbandry infrastructure development fund, for which the Centre will provide 3 per cent interest subvention to eligible beneficiaries.

The Cabinet also decided to form a new institution, which will be known as Indian National Space, Promotion & Authorisation Centre. "It'll guide the private industries in space activities through encouraging policies in a friendly regulatory environment," MoS for Atomic Energy & Space, Jitendra Singh said.

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