Notwithstanding anything contained in section 15 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), is -14- amalgamated or re-organised and the Deposit Insurance and Credit Guarantee Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is amalgamated or the new cooperative bank formed after such amalgamation, or, as the case may be, the insured bank or the transferee bank, shall be under an obligation to repay to the Deposit Insurance and Credit Guarantee Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961).].
34 [20B. [Deposit Protection Scheme. —(1) the Government may, by notification in the Official Gazette, frame Scheme called Deposit Protection Scheme.
(2) Every co-operative credit society and other co-operative societies having credit business, shall register themselves under such Deposit Protection Scheme and pay such contributions, so as to secure deposits of its depositors and members and take such other measures, as specified in the scheme.
(3) The Co-operative Societies referred in sub-section (2) shall renew the registration under such deposit protection scheme by making payment of annual renewal fees as specified in such scheme.
(4) All sums received towards registration fees, annual renewal fee and contributions shall form part of a fund to be called Deposit Protection Fund as may be constituted under the Deposit Protection Scheme.
(5) the Government shall appoint an authority to be the custodian of such Deposit Protection Fund who shall be vested with such powers as may be specified in the Deposit Protection Scheme.
(6) The co-operative societies referred in sub-section (2) shall appoint Chief Executive who shall ensure that the registration of such co-operative societies under deposit protection scheme is timely done and renewed. Failure to renew the registration on the part of Chief Executive shall constitute an offence under section 118 of this Act.
Provided that a co-operative credit society may also formulate an additional deposit protection scheme of it’s own with prior approval of the Registrar, for securing the deposits of its depositors.]
CHAPTER -III Members and their Right and Liabilities