HOW DOES RBI REGULATE CO-OPERATIVE BANKS

The main aim of this study is to analyse the guidelines under which RBI regulates Co-operative banks and how will impact co-operative banking industry in India. Government of India has recently released these guidelines i.e., in the year 2020 that co-operative banks regulatory framework will come under Reserve Bank of India by amending the seven decades old Banking Regulation Act. This amendment will validate a merger and restructuring of banks in public interest, without having to mandate a respite, which not only restrain depositors from withdrawing, but also obstruct the bank's lending operation. In this paper we have covered the industry sizing i.e., how many co-operative banks are there, what's their total asset size & what's the composition of their balance sheet. Through this paper, we have tried to analyse that how this amendment will affect their ownership structure & also their corporate governance strategy. This paper focuses of the issue of PMC Bank and also why Cooperative banks were not under RBI regulation earlier. The data collected is secondary and through RBI website & other government sites.