Co-operative societies not authorised to use word “Bank” in their names by BR Act 1949. RBI Cautions public, DICGC insurance also not available on their deposits
RESERVE BANK OF INDIA
November 29, 2017
It has come to the notice of Reserve Bank of India (RBI) that some Co-operative Societies are using the word “Bank” in their names. This is a violation of Section 7 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) (the B.R.Act, 1949).
It has also come to the notice of RBI that some Co-operative societies are accepting deposits from non-members / nominal members / associate members which tantamount to conducting banking business in violation of the provisions of the B.R.Act, 1949.
Members of the public are hereby informed that such societies have neither been issued any licence under B.R.Act, 1949 nor are they authorized by the RBI for doing banking business. The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies. Members of public are advised to exercise caution and carry out due diligence of such Co-operative societies before dealing with them.
Ajit Prasad
Assistant Adviser
Press Release : 2017-2018/1467
No addition when cash deposited in bank was out of cash in hand available with the assessee and AO could…
Use of word “can” in arbitration clause cannot be said to be a binding arbitration agreement –Supreme Court In a…
Repayments of loans taken for asset generation can’t be deducted to arrive at earning capacity for determining maintenance to wife…
Seat of arbitration is governed by the agreement of the parties and not by the place of hearing or the…
ITAT quashed order u/s 263 enhancing disallowance observing in appellate proceedings, CIT(A) has power of enhancements of income assessed, if…
Section under which penalty should be initiated cannot be subject matter of revisionary jurisdiction under section 263 of Income Tax…