Primary credit societies need RBI nod to be a bank

........Earlier, under the provisions of Section 22, on becoming a co-operative bank, a credit society could continue to carry on its banking business until such a licence was granted by RBI. The Amendment Act now provides that a primary credit society will have to obtain a licence to continue its banking business. The effect of this amendment is that primary co-operative credit societies, engaged in banking business, shall be required to convert themselves into co-operative banks and obtain a licence from RBI..............

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