Cooperative Credit Societies are not required to obtain banking licence from the Reserve Bank of India (RBI) under the provisions of the Banking Regulation Act, 1949.
As per the existing instructions of RBI, the Primary Agricultural Cooperative Credit Societies (PACS) are not authorised to collect deposits from the public except members. They offer deposit services to their members and, in turn, use these resources to lend to the needy members of the Societies.
This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Lok Sabha today.
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