Cabinet approves amendment to bring cooperative banks under RBI regulation

The Union Cabinet has given its approval to bring cooperative banks under the regulatory mechanism of Reserve Bank of India.
The cabinet approved amendments to the Banking Regulation, thus allowing multi-state cooperative banks to come under the regulation of the RBI.
The cooperative banks will now be required to fulfill regulatory requirements that have been set for scheduled commercial banks.
The move will ensure more accountability and transparency in the functioning of the cooperative banks
The move will provide the RBI with official regulatory command over the cooperative banks.
The cooperative banks will now be required to conduct regular audits as per the RBI mandate and take the apex bank’s approval for the appointment of its CEO.
The announcement has been made in the wake of the PMC bank crisis.