AR Kadam answered. It is recommended to avoid FDs in co-operative societies or co-operative banks given the recent case of PMC Bank even though they give better FD returns than Larger Banks.
Is it safe to invest in cooperative society?
However, investor’s money up to ₹ 1 lakh in deposits with co-operative banks is insured under the deposit insurance scheme, like other nationalized banks. Therefore, experts suggest depositors spread their investments across banks. … Another risk is that at times government puts withdrawal limits in case of bank failure.
Is it safe to deposit in credit society?
Since non-scheduled banks are not governed by RBI, it would not be safe to park your money there. In case of scheduled cooperative banks, even as there have been issues plaguing them, it would not be right to say that you must completely avoid parking your savings in them.
Is Indian cooperative credit society under government?
Indian Co-operative Credit Society Ltd. … The society is registered under Government of India, Multi-States Cooperative Societies Act 2002 with registration No.
Is Credit cooperative society a bank?
1 lakh, a primary credit society automatically becomes a primary cooperative bank. However, even after a primary credit society becomes a cooperative bank, it has to apply to RBI for a licence to carry on banking business.
Is the cooperative bank safe?
Is my money safe with the Co-op Bank? The bank says that it is on track to exceed its capital requirements, and that customer money is not at risk. Like all banks, up to £85,000 of customer deposits are protected by the Financial Services Compensation Scheme.
What is the difference between Cooperative Society and Cooperative Bank?
Co-operative Banks procure license from the RBI to carry on banking business in India and hence can accept deposit and maintain bank accounts. … Co-operative Societies do not possess banking license and are formed with the object of promotion of economic interests of its members.
Are scheduled banks safe?
Safety of Capital
While PSU and large private sector banks are considered to be much safer, the degree of capital protection will also depend on how other banks have been categorised by the RBI. Currently, “banks listed as scheduled banks are covered under the deposit insurance program of DICGC, an RBI subsidiary.
Can co-operative society accept deposits?
Co-operative Societies do not possess banking license and are formed with the object of promotion of economic interests of its members. Hence, co-operative societies can maintain accounts and accept deposits from its members only. … Act nor they are authorized by the RBI for doing any type of banking business.
Which is the best cooperative bank in India?
A look at the top 10 cooperative banks of India
- Saraswat Cooperative Bank. …
- Cosmos Cooperative Bank. …
- Shamrao Vithal Cooperative Bank (SVC Bank) …
- Abhyudaya Cooperative Bank Ltd. …
- Bharat Cooperative Bank. …
- TJSB Cooperative Bank. …
- Punjab & Maharashtra Co-operative Bank. …
- Janata Cooperative Bank.