RBI says some Co-operative Societies including primary co-operative credit societies are accepting deposits from non-members, nominal members and associate members, reports United News of India.
Such co-operative societies have neither been issued any licence under Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) nor are they authorized by the Reserve Bank of India for doing banking business, RBI director for Telangana and AP said in a statement.
The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available for deposits placed with these entities, the statement clarified.
Meanwhile, Indian Express reports that questions are being raised over the decision of RBI to accept these old notes considering the extent of alleged irregularities by co-op banks while depositing old notes soon after demonetization.
