New Delhi, June 24: In a major development, Union Minister Prakash Javadekar on Wednesday, June 24, said that government banks including urban cooperative and multi-state cooperative banks to be under Reserve Bank of India (RBI) supervision. He said that an ordinance will be issued in this regard. RBI's supervision will give assurance to depositors that their money is safe in these banks.

"Government banks, including 1482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India(RBI); RBI's powers as they apply to scheduled banks will apply for cooperative banks as well," Javadekar said.

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"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," the Union Minister said.

Among other developments, Javadekar announced that Union Cabinet has approved 2 percent interest subvention to Shishu loan category borrowers under PM Mudra Yojna.

(The above story first appeared on LatestLY on Jun 24, 2020 03:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website