RBI to gain regulatory control over co-operative banks in a phased manner

For now, the new Ordinance has been made effective from June 29 to cover multi-state co-operative banks, others will be covered at a later date

The Union government will notify the recently-promulgated Ordinance to give more teeth to the Reserve Bank of India (RBI) over co-operative banks in a phased manner.

For now, the new Ordinance has been made effective from June 29 to cover multi-state co-operative banks, according to a notification issued by the finance ministry on Tuesday. However, a large majority of co-operative banks that operate only in one state, or state co-operative banks, will be covered under the new law from a later date, a top government official said, requesting anonymity.

“We will notify the new law for state co-operative banks from