Monday, May 14, 2012

BB nod must for banking activity Cabinet okays amendment to cooperative society act


BANGLADESH NEWS

The cabinet on Monday approved the draft of Cooperative Societies (Amendment) Act, 2012 with a provision stating that no co-operative society can carry out banking activity without permission of Bangladesh Bank.

The amendment bars any cooperative society from receiving deposits from any person who is not a member of it.

According to the amendment, a person to face a maximum penalty of seven years and a fine of Tk 10 lakh for breaching the act.

The approval came after the alleged scam of the Destiny group and other multi-level marketing companies' illegal activities.

The weekly cabinet meeting was held at Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair.

Cabinet Secretary M Mosharraf Hossain Bhuiyan told this before the reporters after the meeting.

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