RBI Warning to Co-operative Societies ... Beware of Frauds!
The Reserve bank has warned co-operatives not to make this mistake.
Bank fraud is not new in India. But frauds are on the rise every day in a variety of different ways. No matter how much the banks and the Reserve bank raise public awareness on this issue, fraud is not going away.
As problems come to customers from third parties, now the problems coming through banks have increased.
Customers who deposit money in these cooperatives lose their money. customers do not know cooperative operates with the approval of the Reserve Bank.
The Reserve bank has ordered that no more co-operative societies should use the word ' bank '. The law has already been enacted in this regard.
According to the banking Regulations Act 1949, from september 29, 2020, no cooperative society is allowed to use the word bank.
But some co-operatives have been found to buy customers' money and lend in violation of it. Similarly, it has been reported that the money deposited by the customers in such cooperative societies is not insured.
The Reserve bank has stated that co-operatives should never use names like bank, banker, banking.