Question : Under which authority cooperative banks to be brought?
(a) RBI
(b) All India Banking Association
(c)Finance secretary
(d) None of the above
Answer : (a)
Related facts
Context
Union Cabinet on 24rth June, 2020 approved a slew of proposals, including an ordinance bringing cooperative banks under supervisory powers of the RBI.
Background
In her February 1 Budget speech, Sitharaman had proposed amendments to the Banking Regulation Act with an aim to increasing professionalism and improving governance among the co-operative banks.
Significance
- Coming under both RBI and State Registrars, these banks pose specific supervisory challenges.
- Now all urban cooperative banks and multi-state cooperative banks will come under the supervision of the RBI, a development aimed at providing comfort to depositors and prevent repeat of Punjab and Maharashtra Co-operative (PMC) Bank-like scams.
Cooperative banks statistics
There are 1,482 urban cooperative banks and 58 multi-state cooperative banks having about 8.6 crore depositors with total savings deposit of about Rs 4.85 lakh crore.
By — Pankaj Pandey