Finance Minister said that the cooperative banks will now come under the banking regulation act, due to which they have to comply with other banking rules and regulations.
Finance Minister Nirmala Sitharaman said that except for some perishable commodities, prices of most of the goods and food products are well within the acceptable limits. The Finance Minister added that even the growth figures are realistic and she is confident of achieving the growth estimates presented in the budget. In a reply to a question on the lost trust in cooperative banks, the Finance Minister said that the cooperative banks will now come under the banking regulation act, due to which they have to comply with other banking rules and regulations. Thus, greater regulations on cooperative banks can be imposed and best practices will be managed.
The Finance Minister added that the government has also taken another major step to strengthen trust in the cooperative banks, which is increasing the limit of deposit insurance from Rs 1 lakh to Rs 5 lakh. She further added that the RBI is the regulator of banks and it is monitoring and taking care of banks. Nirmala Sitharaman was speaking at a press conference after interacting with traders and industry representatives on Budget 2020 in Bengaluru today. Speaking on the unstable condition of the telecom industry, the government said that the telecom department has been actively engaging with the telecom companies after the supreme court’s order.
- If economic activity is function of Covid control, India has a major challenge: Moody’s chairman
- Handholding banks must to execute MSME loan scheme; here’s what govt can do to address on-ground issues
- MSME loans sanctioned by PSBs jump 223%; this much amount disbursed under Rs 3 lakh crore credit scheme
Watch | What is Inflation? EXPLAINED
Meanwhile, the Finance Minister addressed a similar session in Mumbai earlier this month. The session was being attended by academicians, professionals, economists, and journalists. She had said there that the announcements made in the new Budget 2020 will make a large section of the middle-class pay tax on dividends at a lower rate and thus they will have more disposable income.