Kerala asks RBI Gov to withdraw caution notice for Coop Societies

Thiruvananthapuram, Dec 2 (IANS): Kerala Cooperation Minister V.N. Vasavan on Thursday wrote to RBI Governor Shaktikanta Das seeking withdrawal of 'Caution Notice' published by the central bank last month in several Malayalam dailies over various cooperative societies using the word "bank" in their names.

The notice directed Cooperative Societies not to use the words, "bank", "banker", or "banking" as part of their names except as permitted under the provisions of the Banking Regulation Act 1949, or by the RBI.

It also noted that cooperative Societies are accepting deposits from non-members/nominal members/associate members, in violation of the provision of the Act 1949, and that insurance cover under the Deposit Insurance and Credit Guarantee Corporation is not available to the deposits of Cooperative Societies.

The Kerala government had expressed deep concern over the RBI notice.

Finding that there was no response from the RBI, Vasavan requested the Governor to withdraw it as such a notice has created lots of confusion among the public and the message adversely affects the credibility of the Cooperative Societies in the state.

"I request your good self to look into the matter and to give necessary direction to the concerned officials to draft their messages without giving any room for ambiguity," he wrote.

Chief Minister Pinarayi Vijayan, while inaugurating a protest against the Centre's high-handedness towards states in front of the official residence of the Kerala Governor the other day , had slammed the authorities for trying to create confusion in the Cooperative Sector in the state and said the Centre should desist from such moves.



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Title: Kerala asks RBI Gov to withdraw caution notice for Coop Societies

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