RBI has called upon Telangana state government to stop cooperative societies belonging to other states from collecting cash deposits from the public by offering abnormally high interest rates, reports Deccan Chronicle.
Cooperative societies from Uttar Pradesh, West Bengal and Maharashtra are indulging in illegal activities, RBI says.
Though these firms are registered as cooperative societies, they are involved in chit funds, which is illegal.
Meanwhile, RBI had a meeting with officials of the cooperative departments of states and alerted them to the fraudulent cooperative societies.