Will amend laws to bet­ter reg­u­late co-op banks: FM

Re­ceives Pro­posal To Hike De­posit In­sur­ance From 1 Lakh

The Times of India (New Delhi edition) - - Times Global - TIMES NEWS NET­WORK

Mum­bai: Fi­nance min­is­ter Nir­mala Sithara­man, who met protest­ing de­pos­i­tors of the failed Pun­jab and Ma­ha­rash­tra Cooperativ­e (PMC) Bank in Mum­bai on Thurs­day, said that the gov­ern­ment is con­sid­er­ing amend­ing laws for bet­ter reg­u­la­tion of cooperativ­e banks. She told re­porters that she will speak to RBI gov­er­nor Shak­tikanta Das seek­ing an early res­o­lu­tion.

Sithara­man said a com­mit­tee of sec­re­taries of eco­nomic af­fairs & fi­nan­cial ser­vices, ru­ral af­fairs & ur­ban de­vel­op­ment min­istries and a deputy gov­er­nor of the RBI would be formed. She added that, if nec­es­sary, the gov­ern­ment will amend the laws govern­ing cooperativ­e banks in the win­ter ses­sion of Parliament.

Sithara­man said that she has re­ceived a pro­posal to in­crease the ex­tent by which in­di­vid­ual de­posits were pro­tected by in­sur­ance from the cur­rent level of Rs 1lakh.

— Nir­mala Sithara­man |

She said that the pro­posal would be placed be­fore the com­mit­tee. The fi­nance min­is­ter was ad­dress­ing a press con­fer­ence at the BJP of­fice in Mum­bai ahead of the state elec­tions.

The fi­nance min­is­ter’s state­ment comes on the back of RBI gov­er­nor Shak­tikanta Das say­ing that the cen­tral bank is tak­ing a fresh look at the reg­u­la­tory frame­work that is in ex­is­tence and that it will take up any changes if re­quired with the gov­ern­ment. “We are in dis­cus­sion with the gov­ern­ment with re­gard to the reg­u­la­tory pro­vi­sions of cooperativ­e banks, which are dif­fer­ent from the other sched­uled com­mer­cial banks,” Das had said.

The PMC Bank fail­ure had thrown up ques­tions about the lim­i­ta­tions in cooperativ­e bank su­per­vi­sion. De­spite be­ing on the core

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