BANKING LAWS (APPLICATION TO CO-OPERATIVE SOCIETIES) ACT, 1965
(1) This Act may be called the Banking Laws (Application to Co-operative Societies) Act, 1965.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
In section 2 of the Reserve Bank of India Act, 1934(2 of 1984) (hereinafter in this Chapter referred to as the principal Act),--
(i) clauses (a) and (aa) shall be re-lettered as clauses (ai) and (aii) respectively, and before clause (ai) as so re-lettered, the following clause shall be inserted, namely:--
'(a) "agricultural operations" includes animal husbandry and allied activities jointly undertaken with agricultural operations;';
(ii) for clause (bb), the following clauses shall be substituted, namely: --
'(bi) "central co-operative bank" means the principal co-operative society in a district in a State, the primary object of which is the financing of other co-operative societies in that district:
Prov
In section 10 of the principal Act, for clause (e) of sub-section (1), the following clause shall be substituted, namely: --
" (e) is a director of a banking company within the meaning of clause (c) of section 5 of the Banking Companies Act, 1949(10 of 1949) or of a co-operative bank.".
In section 17 of the principal Act, in clause (2), Explanation to sub-clause (b) shall be omitted.
In section 18 of the principal Act, in clause (3) of sub-section (1), after the words and figures "the Banking Companies Act, 1949", the words "or to a State co-operative bank or, on the recommendation of the State co-operative bank, to any other co-operative bank" shall be inserted.
In section 42 of the principal Act,--
(i) in sub-section (1), for clause (c) of the Explanation, the following clause shall be substituted, namely:--
'(c) "liabilities" shall not include--
(i) the paid-up capital or the reserves or any credit balance in the profit and loss account of the bank,
(ii) the amount of any loan taken from the Dank or from the Development Bank or from the Agricultural Refinance Corporation or from the State Bank or from any other bank notified by the Central Government in this behalf, and
(iii) in the case of a State co-operative bank, also any loan taken by such bank from a State Government and any deposit of money with such bank representing the reserve fund or any part t
Section 44 of the principal Act shall be omitted.
In section 45H of the principal Act, after the words and figures "section 51 of that Act", the words "or a co-operative bank or a primary agricultural credit society or a primary credit society" shall be inserted.
In section 451 of the principal Act, in clause (e), after the word corporation,", the words "co-operative society" shall be inserted.
In the Banking Companies Act, 1949(10 of 1949) (hereinafter in this Chapter referred to as the principal Act), in the long title and in the preamble, the word "companies" shall be omitted.
(1) In section 1 of the principal Act, in sub-section (1), for the word "Companies", the word "Regulation" shall be substituted.
(2) Any reference to the Banking Companies Act, 1949(10 of 1949) in any law for the time being in force, or in any instrument or other document, shall be construed as a reference to the Banking Regulation Act, 1949.
For section 3 of the principal Act, the following section shall be substituted, namely:--
"3. Nothing in this Act shall apply to--
(a) a primary agricultural credit society;
(b) a co-operative land mortgage bank; and
(c) any other co-operative society, except in the manner and to the extent specified in Part V.".
In section 18 of the principal Act, in clause (b) of the Explanation, for the words "the Refinance Corporation for Industry Limited,", the words "the Industrial Development Bank of India or from the Agricultural Refinance Corporation" shall be substituted.
In the principal Act, after Part IV, the following Part shall be inserted, namely:--
'PART V
Application of the Act to co-operative banks
56. Act to apply to co-operative societies subject to modifications.--The provisions of this Act, as in force for the time being, shall apply to, or in relation to, co-operative societies as they apply to, or in relation to, banking companies subject to the following modifications, namely:--
(a) Throughout this Act, unless the context otherwise requires,--
(i) references to a "banking company" or "the company" or "such company" shall be construed as references to a co-operative bank,
(ii) references to "commencement of this
Form of Balance-sheet
CAPITAL AND LIABILITIES PROPERTY AND ASSETS
Rs.
1. Capital :
(i) Authorised Capital
......Shares of Rs...each
......Shares of Rs ...each Rs. P. Rs. P. Rs.
1. Cash:
In hand and with Reserve Bank, State Bank of India, State co-operative bank and central co-operative bank P. Rs. P.
(ii) Subscribed Capital
......Shares of Rs....each
&nbs
Profit and loss account for the year ended___________
EXPENDITURE INCOME
Rs. P. Rs. P. Rs. P. Rs. P.
1. , Interest on deposits, borrowings, etc. 1. Interest and discount ....
2. Salaries and allowances and provident fund 2. Commission, exchange and brokerage
3. Directors' and local committee members' fees and allowances ..... 3. Subsidies and donations ....
4 Rent, taxes, insurance, lighting, etc. 4. Income from non-banking assets and profit from sale of or dealing with such assets
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