Opening of bank a/c by co-op. society

Save Share

This query is : Resolved

SURINDER SINGH (Querist)
Follow

17 March 2015 CAN A Co-operative Housing society in Delhi open a Bank account with a private Bank like HDFC.Is there any law governing opening of Bank account by co-operative society in DELHI

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

17 March 2015 In order to promote the co operative sector, restriction is imposed on co operative societies to open the bank account with the district central banks.
If you are keen on opening the bank account with a private bank, take a prior permission from the sub registrar of appropriate jurisdiction, clearly giving the reason to him.

SURINDER SINGH

SURINDER SINGH (Querist)
Follow

18 March 2015 Recently I have seen clause 56 of Delhi co-op societies act 2003 permitting it unhindered.Pl. comment (I may be mistaken)

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 March 2015 can you please reproduce the said clause?

SURINDER SINGH

SURINDER SINGH (Querist)
Follow

19 March 2015 Clause 56 says "a co-operative society may invest or deposit its fund
a)---- ; or
b)-----; or
c)--- ; or
d) with co-operative or scheduled or nationalised banks ; or
e)------ ; or
f) in any other mode permitted by the rules
PROVIDED that the co-operative bank shall be required to make investments of its funds in accordance with the directions,instructions and guidelines of the Reserve Bank

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 March 2015 1) The provision is unambiguous. You may open bank account with co operative OR scheduled OR nationalised bank, without prior approval of co operative registrar.

Even 56(2) is more interesting to note.

2) Any investment or deposit made before the commencement of this Act which
would have been valid if this Act had been in force are hereby ratified and
confirmed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now