[AspirantWorld Explained] GoI brings all cooperative banks under supervision of RBI

• The Union Cabinet on Wednesday decided to bring all co-operative banks under the Reserve Bank of India through an ordinance. and a Rs 1,542-crore interest subvention scheme in micro loans.
• This was announced by Union information and broadcasting minister Prakash Javadekar during a virtual press conference.
• The Cabinet also cleared a Rs 15,000-crore fund for animal husbandry announced as part of Atmanirbhar Bharat Abhiyan stimulus package, and approved already-announced reforms in the space sector to boost private sector participation, and upgrade of Kushinagar airport in Uttar Pradesh to international.
• Now 1,482 urban cooperative banks and 58 multi-state cooperative banks will come under the supervisory powers of the Reserve Bank of India.
• The RBI’s powers as they apply to the scheduled banks will also apply to cooperative banks.
• This decision will give an assurance to more than 86 million depositors in these banks that their money amounting to Rs 4.84 trillion will stay safe.

What are various other decisions taken by the government to boost economy amid global pandemic?

• The government also announced to provide 2% interest subvention to borrowers under the ‘Shishu’ category of the flagship Pradhan Mantri MUDRA Yojana (PMMY).
• Under the Shishu category, collateral free loans of up to ₹50,000 will be given to beneficiaries.
• The Union Cabinet has approved the scheme for interest subvention of 2% to Shishu loan category borrowers under PMMY, outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers.
• Launched in 2015, the Pradhan Mantri MUDRA Yojana provides loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises.
• These loans are classified as MUDRA loans under PMMY. Commercial banks, RRBs, small finance banks, MFIs and NBFCs provide MUDRA loans
• Government also announced ₹15,000-crore infrastructure fund to provide interest subvention of up to 3% to private players for setting up of dairy, poultry and meat processing units.
• A fund worth ₹15,000 crore has been approved by the Cabinet that will be open to all and will help in increasing milk production, boost exports and create 35 lakh jobs in the country.

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