Reserve Bank of India (RBI) Governor has indicated that the banking regulator will bring in sweeping regulatory changes to reform urban co-operative banks.<\/p>\n
The Prime Minister, the Union Finance Minister and the Governor were present at an event to mark the payment of nearly \u20b91,300 crore to over 1 lakh depositors whose funds were stuck in distressed banks for years.<\/p>\n
PM, speaking at the event, said that an additional three lakh depositors would get their hard-earned savings, stuck in other banks, soon.<\/p>\n
By the PM:<\/strong><\/p>\n When the RBI will oversee co-operative banks’ functioning, this will also raise depositors’ confidence further. The Govt has created a new Co-operation Ministry<\/a><\/strong><\/span>. The idea is to strengthen the co-operative system and empowering the co-operative banks further.<\/p>\n By Union Finance Minister<\/strong>:<\/p>\n Union Finance Minister, also stressed that the approach of the government has been sensitive to the needs of the middle class.<\/strong><\/p>\n While laws are generally applied prospectively from the date they are passed by Parliament and notified, the Finance Minister said the government made an exception<\/strong> while amending the relevant Deposit Insurance laws.<\/p>\n By RBI Governor<\/strong>:<\/p>\n Urban Cooperative Banks<\/a><\/strong><\/span> have been plagued by a series of failures, and warned people against parking their savings in banks offering high returns.<\/p>\n Govt\u2019s decision to raise the insured limit for bank deposits to \u20b95 lakh from \u20b91 lakh with a 90-day time limit to pay out such deposits is a landmark development<\/strong>. But the payment of Deposit Insurance should be seen as a measure of last resort<\/strong>.<\/p>\n The Central bank keeps depositors\u2019 interests on top<\/strong> while dealing with policy challenges and will continue to ensure that the entire banking system remains robust.<\/p>\n RBI has come out with new governance guidelines<\/strong> for commercial banks, and it has constituted a committee<\/strong> for bringing about reforms in the urban co-operative sector. That report has been received, and RBI will be taking action based on it.<\/p>\n Source<\/strong>: This post is based on the article \u201cRBI Governor, PM signal reforms in trouble-prone urban co-operative banks<\/strong>\u201d published in The Hindu<\/strong> on 12th Dec 2021.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" What is the news? Reserve Bank of India (RBI) Governor has indicated that the banking regulator will bring in sweeping regulatory changes to reform urban co-operative banks. The Prime Minister, the Union Finance Minister and the Governor were present at an event to mark the payment of nearly \u20b91,300 crore to over 1 lakh depositors… Continue reading RBI Governor, PM signal reforms in trouble-prone urban co-operative banks<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[4581,8716,10498,9652],"class_list":["post-152835","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-cooperatives","tag-money-and-banking","tag-the-hindu","tag-urban-co-operative-banks","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700788241,"cached_date":1704906199},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/152835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=152835"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/152835\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=152835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=152835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=152835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}