The central government has issued an ordinance amending the Banking Regulations Act, 1949, bringing all urban cooperative banks and multi-state cooperative banks under the supervision of the RBI in order to protect the interest of depositors. The government said the Ordinance seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already available with RBI in respect of other banks to cooperative banks as well for sound banking regulation, and by ensuring professionalism and enabling their access to capital. The amendments do not affect existing powers of the state registrars of cooperative societies under state cooperative laws, it added.
The amendments do not apply to PACS or cooperative societies whose primary objective is to offer long-term finance for agricultural development.
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