Kanchipuram Cooperative Town Bank Ltd and the Velur Cooperative Urban Bank Ltd.in Tamil Nadu have moved the Madras High Court questioning the ordinance brought in by the central govt putting all cooperative banks under RBI’s control, reports Business Standard.
The banks that have petitioned the court were established as far back as the year 1904. The court has admitted the pleas.
There are more than 1,500 UCBs in the country handling over Rs 7.27 trillion of loans, primarily provided to agriculturists and middle-class people.