State to move SC against RBI

Regulations imposed on cooperative bodies by the central bank

The State Government will approach the Supreme Court against the regulations imposed on cooperative bodies by the Reserve Bank of India (RBI), Minister for Cooperation V.N. Vasavan has said.

The Government had opposed the recent circular issued by the RBI cautioning public against cooperative societies that used the words ‘bank’, ‘banker’ or ‘banking’ as part of their names. The central bank had also noted that some cooperative societies were accepting deposits from non-members/ nominal members/ associate members, which is tantamount to conducting banking business in violation of the Banking Regulation Act.