While replying to a query raised by Lok Sabha MP Kodikunnil Suresh related to report from the Kerala government in matter concerning swindling of funds, embezzlement and forged loans in Karuvannur Cooperative Bank, Thrissur, Union Minister of State for Finance Bhagwat Karad said, “Karuvannur Service Cooperative Bank, Thrissur is a Primary Agricultural Credit Society, which does not come under the regulatory purview of RBI”.
“Cooperative Societies other than Multi State Cooperative Societies are constituted and registered under the respective State Cooperative Societies Acts. The Registrar of Cooperative Societies (RCS) in each State is primarily responsible for the functioning and governance of the cooperative societies”, he added.
Karad reply further added, “As regards the banking activities carried out by the cooperative societies, Reserve Bank of India (RBI) is the regulator as per the Banking Regulation Act, 1949. Primary Agricultural Credit Societies (PACS) are regulated by the respective State Governments. As and when instances of fraud/ misappropriation come to notice, concerned regulatory authorities take necessary action”.