Cooperative societies have neither been issued any licence under the Banking Regulation Act.
Reserve Bank of India
Hyderabad: The RBI has cautioned cooperative societies against accepting deposits from the general public and non members.
RBI regional director for TS and AP R Subramanian said, “It has come to the notice of the RBI that some cooperative societies are accepting deposits from the general public, non-members nominal members and associate members.”
“Cooperative societies have neither been issued any licence under the Banking Regulation Act nor are they authorised by the RBI to do banking. The insurance cover from Deposit insurance and Credit Guarantee Corporation is not available for deposits placed with these societies. The general public are advised to due do due diligence before making deposits,” he said.
( Source : Deccan Chronicle. )
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