Amid ongoing Punjab & Maharashtra Cooperative (PMC) Bank crisis, the Finance Minister Nirmala Sitharaman has reiterated the government commitment to rein in cooperative banks by bringing in necessary legislative changes.
Finance Minister noted that the government is not coming up with a complete solution immediately but it is moving towards better supervision and regulation for cooperative banks. Further, she underlined that the government and RBI discussed the ways at the meetings, to make sure that financial institutions are the best possible manner so that the depositors have confidence in parking their money in banks.
Besides, Nirmala Sitharaman said that the government is also having discussions on hiking the deposit insurance from Rs 1 lakh and that a decision will be taken after proper due diligence, further adding that the government would not like any other institution to fail like the Jet Airways or IL&FS and ruled out any asset quality review of NBFCs.