Deposits with PACs not insured: RBI
RBI today said it does not regulate the activities of Primary Agricultural Cooperative Societies (PACs) and the deposits maintained by them are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
By PTI |
MUMBAI:The Reserve Bank of India (RBI) today said it does not regulate the activities of Primary Agricultural Cooperative Societies (PACs) and the deposits maintained by them are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
On reports that some PACs in Kerala were using 'bank' in their names, the central bank clarified that such entities were not licensed under the Banking Regulation Act.
Under the Act, it is necessary for banks to obtain a banking license from the regulator if they want to do the banking business or use 'bank' in their names, RBI said in a release.
PACs are co-operative societies for facilitating farm lending at the grass root level and are governed by National Bank of Agriculture and Rural Development (NABARD).
On reports that some PACs in Kerala were using 'bank' in their names, the central bank clarified that such entities were not licensed under the Banking Regulation Act.
Under the Act, it is necessary for banks to obtain a banking license from the regulator if they want to do the banking business or use 'bank' in their names, RBI said in a release.
PACs are co-operative societies for facilitating farm lending at the grass root level and are governed by National Bank of Agriculture and Rural Development (NABARD).
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