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Current Affairs

Union Cabinet Approved Amendment to Bring Co-op Banks under RBI

Current context: The Union Cabinet chaired by the Prime Minister Narendra Modi, has decided to bring Cooperative banks under the regulatory mechanism of Reserve Bank of India on 5th February 2020.
 Union Cabinet Approved Amendment to Bring Co-op Banks under RBI
  • The government approved amendments to the Banking Regulation Act, 1949 to ensure greater accountability and transparency in the functioning of Cooperative Banks.
  • According to the data released by RBI, Urban cooperative banks (UCBs) reported nearly 1,000 cases of fraud worth more than Rs 220 crore in the last five fiscals.
  • After the amendment, such banks will come under RBI's (Reserve Bank of India) regulation.
  • And, the Cooperative Banks need to fulfil regulatory requirements set for scheduled commercial banks and will also be audited as per RBI norms.
  • The amendments is made considering the collapse of Punjab and Maharashtra Co-operative (PMC) Bank last year.
  • After the Cabinet nod, the proposal will go for the Parliamentary approval.

Question: 

Q.1 The government of India has recently amended the ________________ to bring Cooperative banks under the regulatory mechanism of Reserve Bank of India? 
a. Banking Regulation Act, 1949
b. The Bankers'Books Evidence Act, 1891
c. The ReserveBank of India Act,1934
d. Recovery of Debts due to Banks and Financial Institutions Act,1993
Union Cabinet Approved Amendment to Bring Co-op Banks under RBI Union Cabinet Approved Amendment to Bring Co-op Banks under RBI Reviewed by Neha Verma on February 05, 2020 Rating: 5

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