So, on October 4, after the implosion at the Punjab and Maharashtra Co-operative Bank, when the RBI reiterated that the banking system was “safe and sound”, quite a few eyebrows were raised. For, it explicitly asked that all entities regulated by it, including cooperative banks, “are required to share/submit details of transaction/accounts”. In 2011, the HDIL group exposure was Rs 1,026 crore while total advances were Rs 2,000 crore. However, by September, the HDIL group exposure ballooned to Rs 6,226 crore while total advances were Rs 8,383 crore. “The RBI will review all the regulations of cooperative banks and will discuss with the government if required,” he said on October 4.

Source: Indian Express October 09, 2019 22:41 UTC