InvestorQ : What is the RBI proposing to do for regulating cooperating banks after the PMC Bank episode involving HDIL in a major fraud case?
Dia Deshpande made post

What is the RBI proposing to do for regulating cooperating banks after the PMC Bank episode involving HDIL in a major fraud case?

Answer
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Ria Jain answered.
6 months ago


Actually, the government and the RBI are moving on a war footing to prevent any future incidents like the PMC Bank case. In fact, the Parliament is expected to shortly clear a Bill to amend Banking Regulation Act in order to bring multi-state co-operative banks under effective RBI regulation. This is likely to happen during the Budget session. This will hopefully prevent a repeat of Punjab and Maharashtra Cooperative Bank like crisis, wherein lakhs of depositors were left in the lurch with no access to their own funds. Currently, there are 1,540 co-operative banks in India with a total depositor base of 86 million and having total savings of about Rs.5 trillion. The RBI needs to beef up its regulatory infrastructure if it has to regulate such a diverse set of financial intermediaries.