If Rahul Modi of the Adarsh Cooperative is to be believed the apex court of the land is going to give a verdict favouring uninterrupted deposits in the credit cooperatives. Modi’s statement is based on a Special Leave Petition filed by the Rajasthan government in the Supreme Court.
Rajasthan govt has in its SLP argued in favour of credit cooperatives, Modi emphasized. I am happy that even the Union agriculture ministry is in our favour as it has reportedly written to the Finance Ministry expressing its disagreement with the “banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill”, he added.
The final verdict in the Supreme Court on Rajasthan High Court’s order that barred credit cooperative societies from accepting deposits without RBI licence is slated to come next month on July 22.
Readers would recall that in 2014 Rajasthan High Court had barred the credit co-operative societies from carrying out banking business without licence from the Reserve Bank of India. The court has also prohibited these societies from carrying out banking activities like ATM and loaning.
Later in an interim order a vacation Bench headed by Justice AK Sikri while issuing notice to the Rajasthan government stayed the HC order till next date.
In its argument before the apex court cooperative societies said they are neither involved in banking activities nor intend to do so. They claim accepting deposits only from members, and any financial aid is also confined to their members and, therefore, the Banking Regulation 1949 cannot be applied against them.