Cabinet approves amendment to bring cooperative banks under the regulatory control of RBI

Cabinet approves amendment to bring cooperative banks under the regulatory control of RBI

Cabinet approves amendment to bring cooperative banks under the regulatory control of RBI

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approved amendments to the Banking Regulation Act to bring cooperative banks under the regulatory mechanism of Reserve Bank of India.

The government has taken this move in the wake of the Punjab and Maharashtra Co-operative (PMC) Bank crisis.

After the Cabinet meeting, Information and Broadcasting Minister Prakash Javadkar said the move will ensure greater accountability and transparency in the functioning of Cooperative Banks.

Minister Javedkar said Cooperative Banks need to fulfill regulatory requirements set for scheduled commercial banks.

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