UTI bail-out to cost Govt Rs 6,571 cr over next 6 months

Stating that UTI had been bifurcated into two entities through an Ordinance late last month, he said during Question Hour that while Unit-I would be managed by a government- appointed administrator, Unit-II would would be run as a company under the Companies Act.

Singh said that repurchases between February and October this year were to the extent of Rs 872 crore under the assured repurchase price and Rs 186 crore under the NAV-based repurchases.

When asked whether the government had issued a new bailout package of Rs 14,000 crore to meet UTI’s liabilities on the US-64 and assured return schemes, he said ‘‘it is not a bailout package. The government had already given a final shape to a reform package for supporting investors in the US-64 scheme.’’

In a bid to reform the functioning of cooperative banks, the government in consultation with the RBI will amend the Banking Regulation Act. On the irregularities being reported in cooperative banks, he said Rs 100 crore had been allocated for carrying out reforms in the cooperative banking sector on the basis of recommendations of Kapoor and Patil committees.