Inflation "quite high": Subbarao

"To maintain integrity of cooperative system and protect public interests, the RBI imposed directions on these 41 banks prohibiting them from accepting fresh deposits," he said. He, however, made it clear that the directions did not imply any ban on normal operations of banks with existing account holders.

Reviewing the progress and contribution of the cooperative sector, the Governor also underlined the need to "professionalise" both the governance structure and functioning of these institutions.

"The cooperative system can become effective instrumentally for inclusive growth and a powerful platform for enfranchising the less privileged," he said.