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Bringing co-op banks under RBI, promoting space entrepreneurship: Highlights of Cabinet meeting

In order to comfort depositors at the cooperative banks, the Cabinet has promulgated an ordinance to bring nearly 1,500 urban cooperative banks and multi-state cooperative banks under RBI's supervision.

By: Express Web Desk | New Delhi | Updated: June 24, 2020 6:59:26 pm
Prime Minister Narendra Modi chaired the Union Cabinet meeting on Wednesday. (Source: Twitter/@ANI)

The Union Cabinet Wednesday announced a slew of measures, including bringing of urban cooperative banks under Reserve Bank of India’s (RBIs) supervision, opening avenues for space entrepreneurship in India, approving Rs 15,000 crore infrastructure fund for dairy, poultry and meat units, among others.

The meeting, chaired by Prime Minister Narendra Modi, was the first since June 3.

Here are the announcements:

Cooperative banks to be brought under RBI supervision

In order to comfort depositors at the cooperative banks, the Cabinet has promulgated an ordinance to bring nearly 1,500 urban cooperative banks and multi-state cooperative banks under RBI’s supervision, Union Minister of Information and Broadcasting Prakash Javadekar told the media. The decision assumes significance after a scam in the multi-state Punjab and Maharashtra Cooperative (PMC) Banks surfaced last year.

“Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of RBI. RBI’s powers, as they apply to scheduled banks, will apply for cooperative banks as well,” Javadekar said.

Govt to provide 2 pc interest subsidy to ‘Shishu’ borrowers under Mudra Yojna

The Cabinet also announced the provision of 2 per cent interest subsidy to borrowers under the ‘Shishu’ category of the flagship Pradhan Mantri MUDRA Yojana (PMMY), outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers.

Under the Shishu category, collateral-free loans of up to Rs 50,000 are given to beneficiaries.

The Union Cabinet approved the scheme for interest subvention of 2 per cent to Shishu loan category borrowers under PMMY, outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers, Information and Broadcasting Minister Prakash Javadekar said.

OBC Commission’s tenure extended by 6 months

The Cabinet also approved the extension of tenure of the OBC Commission, constituted to examine the issue of sub-categorisation within the Other Backward Classes, by 6 months. Now its tenure has been extended till January 31, 2021.

This is the second half-yearly extension given to the commission – the previous one came in January this year.

Javadekar said the panel was tasked to make various recommendations related to OBCs, but its work was affected due to the coronavirus outbreak.

Govt announces formation of Indian National Space Promotion and Authorisation Centre

Minister of State for Atomic Energy and Space, Jitendra Singh, announced the formation of Indian National Space, Promotion and Authorisation Centre (IN-SPACEe) for promotion of space entrepreneurship. The minister said it will “guide the private industries in space activities through encouraging policies in a friendly regulatory environment”.

He, however, clarified that it will not be a separate institution but work as an extension into ISRO.

Govt approves Rs 15,000 cr infra fund for dairy, poultry and meat units

In another announcement, the Cabinet approved Rs 15,000 crore infrastructure fund to promote dairy, poultry, and meat processing. “A Rs 15,000 crore fund 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,” Javadekar said.

Animal Husbandry Minister Giriraj Singh said the new infrastructure fund is part of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi to help those affected due to the Covid-induced lockdown.

“For the first time, we will give interest subvention up to 3 per cent to private players for setting up of processing infrastructure for dairy, poultry and meat,” he added.

Cabinet approves declaration of Kushinagar airport in UP as int’l airport

Union Cabinet also approved Kushinagar Airport in Uttar Pradesh as an International Airport, saying it will spur the Buddhist tourism in India.

“You know that Kushinagar is the mid-point of the Buddhist circuit. It has pilgrimage sites in Lumbini, Shravasti, Kapilvastu nearby it. A little farther, it has sites in Sarnath and Gaya,” Union Environment Minister Prakash Javadekar told the media after a Cabinet meeting.

“However, there was no airport there of international standards. Kushinagar airport is being declared as an international airport. A 3-km-long runway strip has already been made. Now, even a big aircraft of Airbus can land at the airport,” he added.

(With inputs from PTI)

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