Gujarat High Court has issued notice in a petition challenging the constitutionality of Banking Laws (Application to Co-operative Societies) Act, 1965 and certain clauses of an RBI Master Circular which regulates the area of operation of co-operative societies, according to an online news outlet.
The petitioner is the Gujarat Rajya Karmachari Co-operative Society – a co-operative bank registered under the Gujarat Co-operative Societies Act, 1961.
The Petitioner’s grievance arises from the denial of permission by RBI to open branch offices based on a Master circular which regulates the extension of area of operation.
The petitioner has prayed for striking down the Banking Laws (Application to Co-operative Societies) Act, 1965 and clauses 1.2, 1.3 and 1.4 of the Master circular as unconstitutional.