In a significant judgement relating to the registration and functioning of unlicensed urban co-operative banks (UCBs) in Kerala, the Kerala High Court has directed the State Registrar of Co-operative Societies (RCS) and the Reserve Bank of India (RBI) to take action against co-operative societies functioning like banks within two months of receiving complaints regarding violation of statutory provisions under the Banking Regulation Act, 1949.
The central bank, in the last couple of years, has come across several co-operative societies, which have been registered as