19 January 2013
A co-operative society automatically becomes a Co-operative bank if the following conditions are fulfilled:- (1) it is not a agricultural credit society (2) its primary object or principal business is the transaction of banking business (3) its paid up share capital and reserves are not less than Rs.1lakh. (Sec.5 cc(v) r/w Sec.56 of BR act.) To carry on banking business licence from RBI is required.[Sec.22(1)(b) r/w sec.56 of BR act. Please not that RBI is yet to finalise licencing norms in respect of co-operative banks on the basis of recommendations of Malegam committee (2011).
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