Is it mandatory to have an account in co-operative bank? We initially had
that when the society was formed and closed it. Now we are operating from
a nationalised bank?
As the query is pertaining to investments in bank, considering the provisions of Section 154 B-17 of the New Chapter, Government notification dtd. 5/12/2013 and the Bye-laws, following is the present position:
i) A society shall invest or deposit its funds in any one or more of the following:- (a)in a District Central Co-operative Bank, the State Co-operative Bank (having awarded at least “A” Audit class in last three consecutive years). If no such Central co-operative Bank is available in district, then any Nationalised Bank.
(b) any securities specified in Section 20 of Indian Trusts Act
(c) shares or securities, bonds etc.
(d) any other mode permitted by the rules, or by general or special order issued on that behalf by the State Government.
ii) The government by its notification dtd. 5/12/2013 has allowed Investment in nationalised bank, urban co-operative banks having awarded at least “A” Audit class in last three consecutive years and also regional banks.
iii)The bye-law (no. 112) allows the Society to open an account in nationalised bank. Though from the wordings of the forgoing provisions it is not mandatory to have an account in Co-operative Bank; in order to strengthen the Co-operative movement and to follow the co-operative principles “Co-operation among co-operative” and to avoid any technical misinterpretation, we advise you to invest some part of your
funds in any of the above mentioned Cooperative Bank.