The fate of 42 co-operative banks in Gujarat hangs in balance as the Reserve Bank of India (RBI) is yet grant licences to these banks to carry out operations.
Though registered under the Co-operative Societies Act of the respective states, the banking-related activities of co-operative banks are also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.
At least a dozen banks had applied for licences nearly 20 years back, while 10 other banks
