Is cooperative society comes under RBI?

Cooperative banks are currently under the dual control of cooperative societies as well as RBI. While the role of the cooperative society includes incorporation, registration, management, audit, supersession of board of directors and liquidation, RBI is responsible for regulatory functions.

Is moratorium applicable to cooperative society?

The state cabinet has announced a moratorium on loans given by cooperative banks. However, the chief minister has made it clear that the state government will not allow any attempt by the Reserve Bank of India to take over control of cooperative banks in the state.

What is overdue interest in cooperative society?

Overdue interest is interest accrued or accruing in accounts, the amount of which the principal is overdue. In practice, an overdue interest reserve is created and the credit of overdue interest credited to interest account is reduced.

Who regulate cooperative society?

1.1 Constitution and governing laws As the vast majority of co-operative societies are operating only in one State, the State Government and the Registrar of Co-operative Societies appointed by the State are the main regulatory authorities for the co- operative societies.

Can a cooperative society be a bank?

Accordingly, co-operative societies cannot use the words “bank”, “banker” or “banking” as part of their names, except as permitted under the provisions of BR Act, 1949 or by the RBI,” the RBI said.

Is the loan moratorium extended?

RBI extends EMI moratorium for another three months on term loans. Here’s what it means for borrowers. The current EMI moratorium on all the term loans is ending on August 31, 2020. Previously the EMI moratorium was given for three months i.e. between March and May 2020.

Can society charge interest on repair fund?

if interest is chargeable on default payment of repair fund or sinking fund? one of the member is strong and confirm stating that society can not charge interest on repair fund or sinking fund. Society can charge interest only on government dues (property tax, water tax etc) collected by society.

Can Cooperative society charge interest on interest?

Interest can be charged upto a max of 21\% per annum on outstanding amount, provided the society has intimated the due date and the penalty interest rate to be applied in its maintenance bill. 2. Outstanding amount and interest applied should be shown separately in the maintenance bill.

In which year cooperative banks come under RBI regulation?

Though the Banking Regulation Act came in to force in 1949, the banking laws were made applicable to cooperative societies only in 1966 through an amendment to the Banking Regulation Act, 1949.