New Delhi– The Central Cabinet, in a meeting have decided to bring 1,482 Urban Cooperative and 58 Multi-state Cooperative banks under the control of Reserve Bank, informed by Central Minister Prakash Javdekar. ‘To give security to the deposits of the people, the Government has made this decision,’ said Javdekar. Due to an increase in scams and NPA’s in the past years, many banks have become bankrupt leaving behind the account holders into great difficulty; to overcome this situation, the Government has taken this decision.
‘All powers applicable to the scheduled banks will also apply to the Cooperative banks. This will give assurance to 8 crore 60 lakhs depositors in these banks that their money amounting to Rs. 4 lakhs 84 crores will stay safe’, Javdekar added.
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