New Delhi, Oct. 10 -- Finance Minister Nirmala Sitharaman on Thursday said the government will set up a committee comprising two secretaries and a Reserve Bank of India (RBI) deputy governor to amend the cooperative bank regulatory framework. This comes in the wake of the recent developments at the Punjab and Maharashtra Co-operative (PMC) Bank Ltd.

PMC Bank has allegedly enabled financial frauds amounting to Rs.6,500 crore by promoters of Housing Development Infrastructure Ltd (HDIL), putting thousands of depositors and their money at risk. More than two-third of the bank's total loan book has an exposure to HDIL.

"I have asked secretaries of my ministry - economic affairs secretary and banking secretary - to work with rural developmen...