The RBI has asked the state govt to take a slew of effective steps to prevent several multi- state cooperative societies from indulging in illegal collection of funds from the general public.
According to the RBI’s letter, the state govt. has completely failed to control the illegal money collecting activities that have developed over the past years. The societies could give loans but are not allowed to get deposits from the public, a source from the RBI is quoted as saying.
Sources say the Odisha govt. has denied having received any letter from the RBI. However, the economic offense wing of the state crime branch has lately been inundated with hundreds of complaints in this connection, sources add.