NEW DELHI: The government on Wednesday said it has decided to bring 1540 Urban Co-operative Banks (UCBs) and 58 Multi-State Co-operative Banks under the governance of the Reserve Bank of India (RBI). The move is expected to impact about 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe ordinance approved by president with immediate effect.
"UCBs and multi-state cooperative banks will be brought under the RBI supervision process applicable to commercial banks," said Information and Broadcasting Minister Prakash Javadekar while briefing media about the Cabinet decisions.
"Depositor will be assured his money is safe," he said. He said an ordinance in this regard will be promulgated.
There are about 1,482 crore urban cooperative banks and 58 multi-state co-operative banks with a depositors base of about 8.6 crore.
The decision assumes significance amid lakhs of depositors facing problems after a scam in the multi-state Punjab and Maharashtra Cooperative Banks.
Earlier, the Cabinet had approved amendment to Banking Regulation Act to strengthen cooperative banks and avoid PMC Bank like crisis.
(With inputs from PTI)