Govt sources say the govt will introduce banking regulation ordinance in the monsoon session of parliament to bring all urban and multi-state cooperative banks under the control of RBI.
The aim is to bring 1482 urban cooperative banks and 58 multi-state cooperative banks under the direct supervision of the apex bank.
All these banks have over 86.4 million depositors and deposits of around Rs 5 lakh crore.
This ordinance was brought in, in the backdrop of the fraud in the Maharashtra-based PMC Cooperative bank.
No, not necessarily on the backdrop of bustling of PMC Bk. Sahakar Bharati has been demanding full Regulatory Powers for RBI and also a Window for raising Long Term Risk Capital.
Both issues have been addressed by GOI.