Registration of a cooperative society
Vishal
(Querist) 18 December 2011
This query is : Resolved
Registration of a cooperative society having object of providing loan through taking public deposit.......is it possible???
Wether the RBI Regulation,1999 regaring NBFC will apply on cooperatiove society or not??
Advocate. Arunagiri
(Expert) 18 December 2011
Yes it is possible?
RBI regulation, and banking regulation (not NBFC) will apply on cooperative society.
Raj Kumar Makkad
(Expert) 18 December 2011
It is not possible without obtaining specific permission of RBI, SEBI, Registrar of Cooperative Societies etc. The object you are telling is purely of a NBFC which cannot be performed by a cooperative society registered under Cooperative Societies act.
Shonee Kapoor
(Expert) 18 December 2011
Agreed with Ld. Mr. Makkad.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
AMAR RANU
(Expert) 19 December 2011
Contact Registrar of Societies for details.
Guest
(Expert) 19 December 2011
A cooperative thrift and credit society can accept deposits only from its own members, not from public. However, if you register that as a cooperative bank that can help you.
Advocate. Arunagiri
(Expert) 19 December 2011
If the COOP society is accepting deposit and lending, it is called as banking activities.
So, it comes under the banking regulations act. It will not come under NBFC, because the coop society is not a company.
There are 3 types of institutions recognised by the Banking Regulation Act 1949 (As Applicable to Cooperative Societies). As discussed else where in the Report, these are
(i) primary credit societies, who virtually function like banks, but whose networth is less than Rs.1 lakh; who are not members of the payment system and to whom deposit insurance is not extended,
(ii) primary cooperative banks, popularly called Urban Cooperative Banks, whose net worth is Rs.1 lakh and above; who are recognised as banks, are members of payment system and who enjoy deposit insurance
(iii) cooperative credit societies, who confine their activities to their members alone and who do not perform banking functions. In this chapter, the Committee deals with these cooperative credit societies.
Under the provisions of Section 5(ccii) of Banking Regulation Act, 1949 (AACS), a
cooperative credit society is defined as a cooperative society, "the primary object of which is to provide financial accommodation to its members and includes a cooperative land mortgage bank."
vasant kulkarni
(Expert) 19 December 2011
PL.DECIDE WHETHER YOU WANT TO DO BANKING BUSINESS OR SOCIETY BUSINESS.
FOR DOING BANKING BUSINESS AS A COOPERATIVE BANK AT PRESENT NO LICENCE IS GIVEN BY RBI.
IT IS ADVISABLE TO REGISTER A COOPERATIVE SOCIETY WIHT AN INTENTION TO CONVERT IT IN TO A COOP BANK AT FUTURE DATE.
YOU APPROACH DIST DEPUTY REGISTRAR IN YOUR DIST .TO GET THE SOCIETY REGISTERED.AND AFTER CONDUCTING SOCIETY,YOU CAN THINK OF DOING BANKING BUSINESS.
