Hans India reports RBI has filed an affidavit in the Madras High Court saying bringing cooperative banks under its control does not violate any law of the land.
The apex bank said the law recently passed by parliament in this connection is aimed at protecting the interests of depositors and the public.
In the past, it was argued the cooperative laws varied from state to state so there was a need for a national law.
Earlier, two cooperative banks in Tamil Nadu had filed the petitions against the Central Government ordinance bringing them under the RBI control. The ordinance has since been replaced by law, Banking Regulation (Amendment) Bill, 2020.
