Kerala plans to move SC against RBI regulations on co-operative banks

The Kerala government is planning to move the Supreme Court against the RBI for the regulations on co-operative banks.

Kerala cooperation minister V N Vasavan said that a discussion would be initiated with legal experts and other state governments in this regard.

The RBI had stated the other day that in violation of the Banking Regulation Act some cooperative societies were using the title 'bank' and were collecting deposits from non-members without the central bank's nod.

He said that even as earlier orders of the Supreme Court were against the centre's interventions into the co-operative banking sector, the RBI was still trying to make interventions.

In an order pertaining to the 97th constitutional amendment and another order pertaining to Income Tax actions against the cooperative banks the SC had prevented the centre's intervention into the cooperative sector and also clarified the rights of the members. But the RBI is trying to impose control on the cooperative banks by overlooking the SC directives.

He also said that a delegation from the state would take up the issue with the RBI.

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