The Union cabinet has decided to bring urban cooperative and multi-state cooperative banks under the supervision of the Reserve Bank of India (RBI). During the cabinet meeting held on Wednesday, it has been decided to take the ordinance route to implement the change of supervision, said Union Minister Prakash Javadekar.
The decision to bring 1,540 cooperative banks under RBI's supervision will give an assurance to more than 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe. With the change, RBI's powers as they apply to scheduled banks will apply for cooperative banks as well.
The cabinet also decided to boost private participation in the space sector, in line with the decision announced by Finance Minister Nirmala Sitharaman as part of the COVID-19 stimulus package last month. In addition, the cabinet has also approved additional investment by ONGC Videsh for development of blocks A-1 and A-3 blocks in Myanmar.
It also approved the extension of tenure of the commission constituted under Article 340 of the Constitution to examine the issue of sub-categorisation within Other Backward Classes by six months, that is, up to January 31, 2021. A scheme for interest subvention of 2 per cent to Shishu Loan category borrowers under Pradhan Mantri Mudra Yojana, outstanding as on March 31 for a period of 12 months to eligible borrowers were also approved in the routine cabinet meeting on Wednesday.
It also approves declaration of Kushinagar Airport in Uttar Pradesh to an international airport. Establishment of Animal Husbandry Infrastructure Development Fund and 3 per cent interest subvention to eligible beneficiaries were the other key decisions taken.
