The Reserve Bank of India (RBI) is set to roll out a public awareness campaign in Kerala regarding the use of the word “bank” by certain cooperative societies without approval from the central bank.
The initiative aims to inform customers that the use of the term “bank” is regulated under banking laws and can only be used with authorisation from the Reserve Bank of India. The campaign is expected to be carried out through newspaper advertisements across the state.
According to information released by RBI’s Thiruvananthapuram Regional Office, the awareness exercise is intended to help the public clearly distinguish between RBI-regulated banks and other financial entities operating in the cooperative sector.
The move reflects RBI’s continued emphasis on depositor awareness, regulatory clarity and responsible use of banking-related terminology in the financial ecosystem.
RBI had initiated the process for the campaign earlier this year and has now completed the selection process for the publication work.
In Kerala, several PACS and service cooperative societies have long used the term “Bank” in their names despite not holding a banking licence. However, under banking regulations, the use of the word “bank” requires prior authorisation from the Reserve Bank of India (RBI). This has prompted the central bank to step up awareness and caution against the unauthorised use of the term by such cooperative institutions.
