RBI stand on unlicensed banks opposed
By James Paul | 17 Nov 2001
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Kochi: Kerala Cooperation Minister M V Raghavan has taken a strong objection to a recent advertisement released by the RBI that termed the functioning of four cooperative urban banks in Kozhikode district as illegal.
Addressing a press conference here, Raghavan said: These four banks are functioning under the State Cooperative Act, and branding their transactions as illegal is misleading. The state has 94 cooperative urban banks, of which just 53 are under the control of the RBI. The rest of the banks have been functioning under the Act.
Addressing a press conference here, Raghavan said: These four banks are functioning under the State Cooperative Act, and branding their transactions as illegal is misleading. The state has 94 cooperative urban banks, of which just 53 are under the control of the RBI. The rest of the banks have been functioning under the Act.
The RBI move will stifle the cooperative movement in Kerala, which has been playing a key role in credit disbursement over the years, he said.
The government, meanwhile, has introduced an across-the-board one-time settlement for farm and non-farm cooperative credits. Under the scheme, the borrower could pay 10 per cent of the outstanding in the initial installment and the rest in six months time, saving 4 to 11 per cent interest, he said.
