Supreme Court on Wednesday stayed the Rajasthan High Court order that barred credit cooperative societies from...
Supreme Court on Wednesday stayed the Rajasthan High Court order that barred credit cooperative societies from accepting deposits without RBI licence.
A vacation Bench headed by Justice AK Sikri while issuing notice to the Rajasthan government stayed the HC order till next date. Cooperative societies argue they are neither involved in banking activities nor intend to do so. They claim accepting deposits only from members, and any financial aid is also confined to their members and, therefore, the Banking Regulation 1949 cannot be applied against them.
They argued deposits and lending were not banking activities for them as deposits were not accepted from people.
The facility of deposits and loans were only for members in accordance with the provisions of the bye-laws.