87. Notwithstanding anything or inconsistent contained in this Act or Rules framed thereunder or bye-laws of any registered cooperative society or orders issued thereunder, the provision of this chapter shall have overriding effect.
88. The provisions of the Banking Regulation Act 1949 as applicable to Cooperative Societies shall apply to a Co-operative Bank registered under this Act.
89. No Primary Agricultural Credit Co-operative Society or its Federation of association, except those which are permitted to act as a bank under Banking Regulation Act, 1949 (Central Act 10 of 1949) shall be registered with the word bank or any other derivative of the word bank in its registered name or shall use the same as a part of its name:
Provided that where any Primary Agricultural Credit Cooperative Society or its Federation or association, those which are permitted to act as a bank under Banking Regulation Act 1949 (Central. Act 10 of 1949) has been registered or using the same as a part of its name before the commencement of this Act, with the word bank or any of its derivatives in its registered name, it shall within three months from the date of such commencement, change its name so as to remove the word bank or its derivative, if any, from its name:
Provided further that where any such co-operative society fails to comply with the above provisions within the period specified therein, the Registrar shall order the winding up of such cooperative society forthwith.
90. (1) Every person or group holding a minimum deposit of rupees one thousand for a continuous period of minimum two years or such other amount or time as may be prescribed in a Primary Agricultural Credit Co-operative Society shall become a member of the co-operative society by subscribing the minimum Share Capital specified in the bye-laws and shall have full membership and voting rights.
(2) A group borrower shall become a member of a Primary Agricultural Credit Co-operative Society by subscribing the minimum Share Capital specified in the bye-laws and shall have full voting rights.
(3) Every group depositor or group borrower admitted as a member shall be entitled to vote through a delegate nominated by the group.
91. There shall be at least such members of professionals having special knowledge or experience in such field as may be stipulated by the Reserve Bank and the Managing Body of the State Cooperative Bank shall comply with such stipulations of Reserve Bank of India.
92. (1) The members of the Managing Body and the Chief Executive Officer of the State Co-operative Bank shall fulfill the criteria stipulated by the Reserve Bank for the time being in force;
(2) The members of the Managing Body and the Chief Executive Officer of the State Co-operative Bank who do not fulfill the criteria stipulated by the Reserve Bank shall be removed by the Registrar.
93. (1) Every Co-operative Bank shall have its Account audited by a qualified Chartered Accountant in each financial year, subject to such directions as the Reserve Bank may issue from time to time.
(2) The Accounts of the State Co-operative Bank shall be audited and certified by Chartered Accountant appointed from a panel approved by Government or an authority authorized by the State Government in this behalf.
(3) The Registrar shall conduct Special Audit of the State Cooperative Bank on its own volition or if requested by the Reserve Bank and furnish a copy of the report to the Reserve Bank and the National Bank within the time stipulated by the Reserve Bank.
94. (1) Every Cooperative Bank shall abide by the directions, guidelines and prudential norms, if any, issued by the Reserve Bank from time to time in respect of acceptance of deposits, borrowings, lending, investment or any other financial matters.
(2) The prudential norms including Capital to Risk Weighted Assets Ratio shall be prescribed by the Registrar for all the Primary Agricultural Credit Co-operative Societies in consultation with the National Bank.
95. (1) The Registrar shall ensure that Reserve Banks regulatory prescription in case of State Co-operative Bank including recommendation for supersession of the Managing Body and winding up of the State Co-operative Bank are implemented within one month of being so advised by the Reserve Bank;
(2) The Registrar shall ensure that the liquidator or the administrator, as the case may be, is appointed within one month of being so advised by the Reserve Bank for winding up or supersession.
96. The supersession of the Managing Body of a Primary Agricultural Credit Co-operative Society shall be done only on the following grounds: -
(a) if the society incurs losses for three consecutive years; or
(b) if serious financial irregularities or frauds have been identified; or
(c) if there are judicial directives to this effect; or
(d) if there is a lack of quorum for three consecutive meetings;
97. The Registrar shall conduct election to a Co-operative Credit Structure Society before the expiry of the term of the existing Managing Body.
98. The Registrar shall conduct elections to a Co-operative Credit Structure Society within two months from the date of supersession; Provided that in circumstances beyond control the Government may allow holding of such election within a period not exceeding six months from the date of supersession.
99. A member of the Managing Body of a Primary Agricultural Cooperative Credit Society which has been superseded under this Act shall not be entitled to contest the election again for a period of three years from the date of supersession.
100. A Co-operative Credit Structure Society shall have freedom to decide its financial and administrative matters, especially-
(i) interest rates on deposits and loans:
Provided that in the case of the State Co-operative Bank, the interest rates shall be in conformity with the guidelines issued by the Reserve Bank;
a(ii) borrowing and investments;
(iii) loan policies and individuals loan decisions;
(iv) personnel policy, staffing recruitment, posting and
compensation to staff; and
(v) internal control systems, appointment of auditors and fees for the Auditor.
101. The Governments subscription in the Share Capital of any Cooperative Credit Structure Society shall not exceed twenty five percent and the Government or Co-operative Credit Structure Society may reduce the Government's subscription further at its choice:
Provided that in case State Co-operative Bank is unable to comply with requirements of sub-section (1) of section 11 of the Banking Regulation Act, 1949 (Central Act 10 of 1949), the State Government can contribute equity to the extent required to enable State Co-operative Bank to comply with the requirements of subsection (1) of Section 11 of Banking Regulation Act, 1949 (Central Act 10 of 1949).
102. (1) There shall be only three nominees of the State Government, of which one would be represented by the State Finance Department in the Managing Body of the State Cooperative Bank.
(2) There shall be a nominee of the Government in the Managing Body of a Primary Agricultural Credit Co-operative Society irrespective of Government's subscription to the Share Capital.
103. A Co-operative Credit Structure Society may affiliate or disaffiliate with a Federal Co-operative Society of its choice; provided that before dis-affiliation, the society shall discharge its financial liability, if any, to the society from whom it is dis-affiliating.
104. A Co-operative Credit Structure Society shall have the freedom of entry and exit at any tier and there shall be no mandatory restrictions of geographical boundaries for its operation.
105. A Co-operative Credit structure society shall have the freedom to invest or deposit its funds in any Bank or financial institution regulated by the Reserve Bank and not necessarily in the Federal Society to which it is affiliated.
106. A Co-operative Credit Structure society may obtain loans from any bank or financial institution regulated by the Reserve Bank and refinanced from the National Bank or any Financial Institution directly or through any Reserve Bank regulated Financial Institution and not necessarily from the Federal Society to which it is affiliated.
107. A Primary Agricultural Credit Co-operative Society may pay dividend in accordance with the guidelines framed by the Registrar in consultation with the National Bank.
108. No person shall be elected, nominated or co-opted or allowed to continue as a .member of the Managing Body of a Co-operative Credit Structure Society, if he-(i) is a person who represents a Co-operative Society other than a Primary Agricultural Credit Co-operative Society or the Managing Body of the State Co-operative Bank, if such society he represents has committed a default towards the repayment of such Bank for a period exceeding ninety days;
(ii) is a person who committed a default towards payments to a Primary Agricultural Credit Co-operative Society or the Managing Body of the State Co-operative Bank, if such Co-operative Society he represents has committed a default towards the payment of such bank for a period exceeding one year unless the default is cleared; and
(iii) is a person, who represents a Co-operative Society whose Managing Body is superseded.
109. (1) The Bye-law or any amendment to the Bye-laws of a Cooperative Credit Structure Society shall be registered by the Registrar within thirty days from the date of receipt of the application.
(2) If the Registrar Is satisfied that the proposed Bye-laws or the amendments to the Bye-laws are contrary to the provisions of this Act and the Rules made thereunder he shall reject the same duly recording his reasons thereon within thirty days from the date of receipt of the application.
110. The State Government or the Registrar shall have the powers to issue directive or take any action in the interest of the Cooperative Credit Structure Society In the State or in furtherance of this Act.