Exercise Caution While Depositing in Coop Societies: RBI | CORPORATE ETHOS

Exercise Caution While Depositing in Coop Societies: RBI

By: | July 1, 2017

July 1: Sounding a note of caution on making deposits, the Reserve Bank of India (RBI) has called upon the general public to be cautious and make everything right sure exercise caution and think over before dealing with certain co-operative societies and primary co-operative credit societies.

In a statement, the apex bank said that members of the public are informed that such co-operative societies have neither been issued any licence under the Banking Regulation Act, 1949 (as applicable to co-operative societies) nor are they authorised by the RBI for doing banking business.

Insurance cover from the Deposit Insurance and Credit Guarantee Corporation is not available for such deposits,’ the RBI was quoted in a news report.

It is said that the advice for caution comes from the Reserve Bank as it was reported that there have been instances of some co-operative societies/primary co-operative credit societies accepting deposits from non-members/ nominal members / associate members.