Business »  Topic »  Will expanded RBI oversight change cooperative banking?

Will expanded RBI oversight change cooperative banking?


From the point of view of RBI , the challenge would be to regulate and supervise these 1,500-odd banks with the same rigour as is accorded to the commercial banks.

The recent ordinance relating to cooperative banks, barring those which lend to farmers, has brought in a certain amount of euphoria. The ordinance gives regulatory oversight of these banks, essentially urban cooperative banks and multi-state cooperative banks, a push by putting in place a stronger RBI supervisory structure for them. The objective, as stated by the government, was to provide protection to the deposit-holders.

Two things must be remembered. The ...


Read the full text financialexpress