As there were many unlicensed cooperative banks operating in the country, the Committee on Financial Sector Assessment (CFSA) (Chairman: Dr. Rakesh Mohan) had recommended  BIS central bankers’ speeches  3  that no unlicensed cooperative bank may be allowed to operate in cooperative space beyond 31 March 2012. 19.
As on March 31, 2009, there were 31 State Cooperative Banks (StCBs) and 371 District Central Cooperative Banks (DCCBs) functioning as part of short-term cooperative credit structure. Out of these, 313 banks (StCBs-17 and DCCBs-296) were unlicensed.