Another apprehension that was raised during the public debate on the Discussion Paper was that it is not easy for supervisors to prevent or detect selfdealing because banks can hide related party lending behind complex company structures or through lending to suppliers of the promoters and their group companies.
The Reserve Bank of India in pursuit of its commitment to allow only licensed cooperative banks to do banking business in India relaxed the licensing parameters that enabled 290 cooperative banks (StCBs / DCCBs) to get banking license from RBI. Only 23 banks remained unlicensed as on date in four States viz.