November 08, 2019

RBI Has Given Inputs For Amendments To The Co-Operative Societies Act To Union Finance Ministry, Says RBI Governor

[ By Bobby Anthony ]


Reserve Bank of India (RBI) Governor Shaktikanta Das has stated that the RBI has already given inputs for proposed amendments to the Co-operative Societies Act to the Union Finance Ministry to strengthen regulatory control over such banks after the PMC Bank crisis.

He stated that there is a forensic audit underway at the PMC Bank which the RBI is closely monitoring.

“We are providing inputs to the government for legislative changes in the Act (Co-operative Societies Act). The government will decide on the final amendment," Das said after a meeting of the Financial Stability and Development Council (FSDC) in Mumbai recently.

The FSDC is chaired by the Union Finance Minister and is a body of financial regulators such as the SEBI, IBBI, CCI PFRDA and the IRDAI.

Das stated that the RBI is in touch with various investigating agencies about the realizable value of the assets which were securitized by the PMC Bank. The realizable value or actual market values of assets are also being assessed, he stated.

It may be recalled that earlier, Union Finance Minister Nirmala Sitharaman had told PMC Bank depositors that legislation will be brought during the forthcoming winter session of Parliament to amend the Co-operative Societies Act which governs co-operative banks.

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