Co operative societies as banks

 It is observed that Reserve Bank of India has been regularly releasing half page advertisements in newspapers informing the public that co operative societies are not authorised to use the word 'Bank' in their names as they are not registered under Banking regulation act and deposits with such societies are not eligible for insurance cover. However, as a regulator, other than releasing the ads, RBI does not appear to take any other steps against such mis leading acts of co operative societies . Bu unauthorisedly using the word Bank in their names these societies are cheating the public to keep their money with them,that too offering interest rate higher than that offered by regular banks. Thus the gullible public are lured to these entities not knowing the fact that their money is not at all safe there.

I would like to appeal to RBI to initiate some proactive steps to ensure against such unauthorised use of the name Bank by the societies. Proper legal action should be initiated against such entities by the RBI, I feel.