The Reserve Bank of India has said that there is no violation of any law of the nation in bringing the cooperative banks under its supervisory control.
In an affidavit filed in the Madras High Court today, the RBI has said, the recent legislation enacted in Parliament is aimed at regulating banking.
It further said that the law is aimed at safeguarding the interests of the depositors and the public.
It said, the laws governing the cooperatives vary from state to state and therefore, the banking activities being done by them require a national law.
It further said, the RBI is empowered to regulate any banking activity including those by the cooperative bodies.
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