Amendment status not verified — confirm the current text below against the official source.
(1) A co-operative society shall not make a loan to any person other than a member: Provided that with the general or special sanction of the Registrar, a co- operative society may make a loan to another co-operative society : Provided further that the co-operative bank shall make loans and advances as per directions of the Reserve Bank from time to time. (2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security. Restrictions on borrowings.