(1) Subject to the provision of sub-section (3), a society may invest or deposit its funds-
(a) in savings account of Government Post -office or Government securities; or
(b) in any Bank or financial institution regulated by Reserve Bank;
or
(c) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (II of 1882); or
(d) with the federal society of which it is a member or in the purchase of the share thereof; or 34
(e) with any other society with limited liability or in the purchase of the shares or securities or debentures thereof.
(2) The reserve fund of a society shall be utilized only in such manner and on such terms and conditions as may be laid down by the Registrar in this behalf:
Provided that in the case of co-operative credit structure, the manner and terms and conditions to be laid down for utilization of the reserve fund by the Registrar shall be subject to the guidelines specified by the National Bank.
(3) No investment of any of its fund in immovable or movable property, other than funds created for specified purposes, shall be made by a society, other than a housing society.
(4) A society accepting deposits shall maintain, as a cover against such deposits, fluid resources to such extent and in such manner as may be specified by the Registrar from time to time:
Provided that in the case of co-operative credit structure, the Registrar shall specify the extent and manner after consultation with the National Bank.