Credit cooperative states to not accept deposits without license in Rajasthan
Q. Which state’s High Court has prohibited credit cooperative societies in the state from accepting deposits from people without getting licence from the Reserve Bank of India?- Published on 14 May 15a. Maharashtra
b. Gujarat
c. Rajasthan
d. Uttar Pradesh
ANSWER: Rajasthan
The division bench headed by Chief Justice Sunil Ambwani gave the orders while hearing a PIL which had raised suspicion on the credibility of the societies in terms of the deposits taken from non-members.
The court observed that these societies are carrying out banking activities without any permission from RBI.
The court also considered the ATM installations by these societies as a banking activity. In its order, the bench said that the societies' directors will have to return the entire deposited amount to the depositors as per rules.
