Reported by: banking|Updated: December 1, 2017
The Reserve Bank of India has barred cooperative societies using the word ‘bank’ in their names. In a statement, the central bank said some cooperative societies are using the word – Bank – in their names and this is a violation of Banking Regulation Act, 1949 (As Applicable to cooperative societies). RBI also said it has come to its notice that certain cooperative societies are accepting deposits from non-members or nominal members or associate members, which is tantamount to conducting banking business in violation of the provisions of the 1949 law. It said such societies have neither been issued any license under the act nor are they authorized by the RBI to undertake banking business.