Centre to consider law amendments to regulate coop banks: FM

Finance minister Nirmala Sitharaman said that centre is considering law amendments for better regulation of cooperative banks. She also said she will speak to RBI governor Shaktikanta Das seeking an early resolution in the matter.

Nirmala Sitharaman

She made this announcement while meeting protesting depositors of the failed Punjab and Maharashtra Cooperative (PMC) Bank in Mumbai on Thursday.

Sitharaman added that a committee comprising of secretaries of economic affairs & financial services, rural affairs & urban development ministries and a deputy governor of the RBI would be created. She further said, if required, the government will amend the laws governing cooperative bank during the winter session of Parliament.

Sitharaman said that she has received a request to inflate the degree by which individual deposits were sheltered by insurance from the current level of Rs 1 lakh. She said that the proposal would be presented before the committee. The finance minister was addressing a press conference at the BJP office in Mumbai ahead of the state elections.

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