Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
Champions Trophy tournament
access_time 21 Nov 2024 5:00 AM GMT
The illness in health care
access_time 20 Nov 2024 5:00 AM GMT
The fire in Manipur should be put out
access_time 21 Nov 2024 9:19 AM GMT
America should also be isolated
access_time 18 Nov 2024 11:57 AM GMT
Munambam Waqf issue decoded
access_time 16 Nov 2024 5:18 PM GMT
The betrayal of the highest order
access_time 16 Nov 2024 12:22 PM GMT
DEEP READ
Munambam Waqf issue decoded
access_time 16 Nov 2024 5:18 PM GMT
Ukraine
access_time 16 Aug 2023 5:46 AM GMT
Foreign espionage in the UK
access_time 22 Oct 2024 8:38 AM GMT
exit_to_app
Homechevron_rightBusinesschevron_rightRBI rejects Kerala's...

RBI rejects Kerala's plea to review ban on calling co-op societies as 'banks'

text_fields
bookmark_border
RBI rejects Keralas plea to review ban on calling co-op societies as banks
cancel

Thiruvananthapuram: Union Finance Minister Nirmala Sitharaman on Monday informed the Lok Sabha that the Reserve Bank of India (RBI) has rejected Kerala's plea to review the ban on terming co-operative societies as 'banks.'

The statement from the finance minister comes amid Kerala Government's move to secure primary societies in the cooperative sector from stringent guidelines of the RBI.

The minister backed that the RBI's notice cautioning general public regarding the unlicensed and unauthorised activities of certain cooperative societies was in exercise of its powers and duties provided under the Banking Regulation Act.

Quoting the RBI, the minister said some cooperative societies using the word "bank" in their names and accepting deposits from non-members/nominal members/ associate members was tantamount to conducting banking business without obtaining a banking licence from RBI.

In its directive issued last month, the RBI had barred co-operative societies from using the term banks and restrained them from taking deposits from those who do not have voting rights. It also asked co-operative societies not to use locker facilities and other banking norms.

The minister said the RBI had received a letter from the Registrar of Cooperative Societies, Kerala, and another from the minister of cooperation and registration seeking withdrawal of the caution notice.

Howeber, the RBI has informed that the notice was part of its duty and was in no way against the functioning of cooperative societies.

The minister's statement was in reply to a question by Sougata Ray.

Show Full Article
TAGS:BanksReserve bank of indiaco-operative society
Next Story