Amidst Punjab & Maharashtra Cooperative (PMC) Bank crisis, the Finance Minister Nirmala Sitharaman on Tuesday reiterated that the government was committed to rein cooperative banks by bringing necessary changes in the legislative.
The minister said that the finance ministry and the Reserve Bank of India officials had three meetings post the PMC Bank crisis and they all were searching for ways to bring customers’ confidence back in the nation’s banking system.
“Where there is a necessity, we will bring in amendments to the law in such a way that when you call yourself a bank, you have to be governed by the principles of the Banking Regulation Act,” Sitharaman said on the sidelines of an event.
She, however, said the government is not coming up with a complete solution immediately but it is moving towards better supervision and regulation for cooperative banks.
“I am not indicating that everything is going to shake up or disruptive. I am only saying that we are looking at ways to ensure the confidence of the public in banks,” the finance minister said.
Meanwhile, the leader further hinted towards increasing deposit insurance from Rs 1 lakh.
(With input from agencies)