Reserve Bank of India (RBI) has alleged corporative societies not use the word ‘Bank’ in their names as it violates the Banking Regulation Act.

It has come to the notice of RBI that some co-operative Societies are using the word “Bank” in their names. This is a violation of Section 7 of the Banking Regulation Act, 1949, the central bank said.

It further said that such societies have neither been issued any license under the Act nor are they authorized by the RBI for doing banking business.

The central bank has advised the public to exercise caution and carry out due diligence of such cooperative societies before dealing with them.

Source: Economic Times