Union Cabinet Approves Ordinance To Bring Urban & Multi-State Cooperative Banks Under RBI Supervision

first_imgNews UpdatesUnion Cabinet Approves Ordinance To Bring Urban & Multi-State Cooperative Banks Under RBI Supervision LIVELAW NEWS NETWORK24 Jun 2020 5:39 AMShare This – xThe Union Cabinet on Wednesday approved an Ordinance to bring urban cooperative banks and multi-state cooperative banks under the supervision of Reserve Bank of India.This was announced by Union Minister Prakash Javadekar in a media briefing about the cabinet decisions.”It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe”, the Minister…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginThe Union Cabinet on Wednesday approved an Ordinance to bring urban cooperative banks and multi-state cooperative banks under the supervision of Reserve Bank of India.This was announced by Union Minister Prakash Javadekar in a media briefing about the cabinet decisions.”It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe”, the Minister said.#Cabinet approves an ordinance to bring 1,482 urban and 58 multi state cooperative banks under the supervision power of @RBI. It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe: Union Minister @PrakashJavdekar #cabinetdecisions pic.twitter.com/1voDml0Iiz— PIB India (@PIB_India) June 24, 2020The decision assumes relevance in the backdrop of the Punjab and Maharashtra Cooperative Bank scam, affecting lakhs of depositors.In April, a Constitution Bench of the Supreme Court had held that cooperative banks must comply with the provisions of the Banking Regulation Act with respect to their operations. The SC also held that SARFAESI Act was applicable to cooperative banks.Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img read more