Co-operative Societies is a state subject and Banking a Central Subject. What about banking by co-operative societies? Does it require licence under the Banking Regulation Act?

2. All these original petitions relate to the registration and functioning of unlicensed urban banks. The very expressions "unlicensed" and "Bank" would call for a detailed examination as to what is banking and whether it requires licence for conducting banking business. Such examination is all the more necessary since the unlicensed banking is attempted to be conducted by co-operative societies registered under the Kerala Co-operative Societies Act, 1969. The scope of the expressions "Co-operative Society" and various types of such societies and "banking" as appear in the Kerala Co-operative Societies Act, 1969 (Act 21, 1969) Banking Regulation Act, 1949 (Act 10 of 1949) Reserve Bank of India Act 1934 (Act 2 of 1934) National Bank for Agriculture and Rural Development Act, 1981 generally known as NABARD Act (Act 61 of 1989) and The Deposit Insurance and Credit Guarantee Corporation Act, 1961 (Act 47 of 1961) also requires to be examined.

3. Banking is entry 45 in List I of the Seventh Schedule of