3/11/2017 TheBankingRegulation(CooperativeSocieties)Rules,1966

CentralGovernmentAct
TheBankingRegulation(CooperativeSocieties)Rules,1966
TheBankingRegulation(CooperativeSocieties)Rules,19661

1.Shorttitleandcommencement.
(1)TheserulesmaybecalledtheBanking(CooperativeSocieties)Rules,1966.
(2)TheyshallcomeintoforceonthedateoftheirpublicationintheOfficialGazette.

2.Definitions.Intheserules,unlessthecontextotherwiserequires,
(a)theActmeanstheBankingRegulationAct,1949(10of1949)
(b)commencementoftheserulesmeans
(i)inthecaseofaCooperativeSocietywhichatthecommencementoftheBankingLaws
(ApplicationtoCooperativeSocieties)Act,1965(23of1965)isaCooperativeBankandis
carryingonthebusinessofbanking,thedateonwhichtheserulescomeintoforce
(ii)inthecaseofaCooperativeSocietywhichbecomesaCooperativeBankorwhich
commencesbankingbusinessasaCooperativeBankafterthecommencementoftheBanking
Laws(ApplicationtoCooperativeSocieties)Act,1965(23of1965)thedateonwhichthese
rulescomeintoforceorthedateonwhichtheCooperativeSocietysobecomesaCooperative
Bankorsocommencesbankingbusiness,whicheverislater

(c)Formmeansaformappendedtotheserules
(d)placeofbusinessofaCooperativeBankincludesanysuboffice,payoffice,subpayoffice
andanyplaceofbusiness,atwhichdepositsarereceived,chequescashed,moneyslent,orany
otherformofbusinessreferredtoinsubsection(1)ofsection6oftheActistransacted
(e)principalofficeoftheCooperativeBankmeanstheofficeoftheCooperativeBankwhich
willberesponsibleforthesubmissionofthereturnsprescribedundertheActortheserules
1 [(f)principalofficeoftheReserveBankmeans,

(i)inrelationtoaprimaryCooperativeBank,theofficeoftheUrbanBanksDepartmentof
theReserveBankand
(ii)inrelationtoaCentralCooperativeBankoraStateCooperativeBank,theofficeofthe
RuralPlanningandCreditDepartmentoftheReserveBanktowhichthereturnsprescribed
undertheActortheserulesarerequiredtobesubmitted]

(g)quartermeansaperiodofthreemonthsendingonthelastdayofMarch,June,Septemberor
Decemberofanyyear
(h)allexpressionsusedandnotdefinedintheserulesbutdefinedintheActshallhavethesame
meaningsasassignedtothemundertheAct
(i)referencesintheserulestosectionsoftheActshallmeansreferencestothosesectionsas
appliedtoorinrelationtocooperativesocietiesbysection56oftheAct.

3.Submissionofreturns.
(1)AreturnprescribedundertheActortheserulesshallbesubmittedintheformprescribedfor
thepurposeorasneartheretoascircumstancesadmit.
(2)SuchreturnshallbesubmittedbytheprincipalofficeofaCooperativeBanktothe2[Principal
office]oftheReserveBanksituatedintheStateinwhichtheCooperativeBankhasitsprincipal

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officeortosuchotherofficeoftheReserveBankasmaybespecifiedbytheReserveBankonan
applicationtobemade2[inthisbehalf
(a)byaprimaryCooperativeBanktotheReserveBankofIndia,CentralOffice,UrbanBank
Department,Bombayand
(b)byaCentralCooperativeBankoraStatecooperativetotheReserveBankofIndia,
CentralOffice,RuralPlanningandCreditDepartment,Bombay.]

(3)ACooperativeBankshallintimatetotheprincipalofficeoftheReserveBank,theaddressof
itsprincipalofficewithinonemonthfromthecommencementoftheserulesandanychangein
suchaddresswithinonemonthofsuchchange.
(4)Notwithstandinganythingcontainedinsubrule(2),theReserveBankmay,atanytime,direct
thatthereturnsprescribedundertheActortheserulesshallbesubmittedfromanyother
specifiedofficeofaCooperativeBanktoanyotherspecifiedofficeoftheReserveBank.
(5)WhereverareturnprescribedundertheActortheserulesrelatestoaparticulardayordate,
thereturnshallbepreparedonthebasisofthefiguresofthatdayordateinrespectofoffices
workingonthatdayordate,dateandtheprecedingworkingdaysfiguresinrespectofoffices
wherethatdayordateisaholiday.

4.ListofOfficers.
(1)ACooperativeBankshall,notlaterthanonemonthfromthecommencementoftheserules,
sendtothe3[officespecifiedinsubrule(2)]awrittenstatementcontainingalistof
(a)thenames,theofficialdesignationsandspecimensignaturesoftheofficersauthorisedto
signonbehalfoftheCooperativeBankreturnsrequiredtobesubmittedundertheActor
theserules,and
(b)thenamesandaddressesoftheDirectorsoftheCooperativeBankorthemembersofthe
committeeofmanagementoftheCooperativeBank.
4[(2)Thestatementcontainingthelistsreferredtoinclauses(a)and(b)ofsubrule(1)shallbe
sentbyaprimaryCooperativeBanktotheprincipalofficeoftheReserveBankandbyaCentral
CooperativeBankandaStateCooperativeBanktotheprincipalofficeoftheReserveBank,and
alsototheofficeoftheNationalBanksituatedintheStateinwhichtheCooperativeBankhasits
principalofficeortosuchotherofficeoftheNationalBankasmaybespecifiedbytheNational
Bank.]
5[(3)]Anychangeinthelistreferredtoinsubrule(1)shallbeintimatedtotheprincipalofficeof

theReserveBank3[and,inthecaseofaCentralCooperativeBankandaStateCooperativeBank,
alsototheofficeoftheNationalBanksasspecifiedundersubrule(2)]withinonemonthfromthe
occurrenceofsuchchange.

6[5.Formofstatementofliabilitiesandcashreserveandotherassets.Thereturntobesubmitted
undersection18andsubsection(3)ofsection24oftheActshallbeinFormIandthereturntobe
submittedundersubsection(2)ofsection20oftheActshallbeinFormII.]

6.Licensingofcooperativesocieties.ACooperativeSocietyorabankdesiringtohavealicence
undersection22oftheActshallapplytotheprincipalofficeoftheReserveBnkintheFormspecified
below,namely:
7 [(a)inthecaseofaCooperativeSocietydesiringtocommencebankingbusinessafterthe
commencementoftheBankingLaws(ApplicationtoCooperativeSocieties)Act,1965(23of
1965),
(1)asaprimaryCooperativeBank,inFormIIIA,
(2)asaCentralCooperativeBank,inFormIIIB,and
(3)asaStateCooperativeBank,inFormIIIC]

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3/11/2017 TheBankingRegulation(CooperativeSocieties)Rules,1966

8[(b)inthecaseofaCooperativeSociety,whichatthecommencementoftheBankingLaws
(ApplicationtoCooperativeSocieties)Act,1965(23of1965),wascarryingonbusinessasaCo
operativeBank,oraCooperativeBankwhichhascomeintoexistenceasaresultofthedivisionof
anyotherCooperativeSocietycarryingonbusinessasaCooperativeBank,ortheamalgamation
oftwoormorecooperativesocietiescarryingonbankingbusinessoraprimarycreditsociety
whichbecomesaprimaryCooperativeBankaftersuchcommencement,anddesirestocarryon
bankingbusiness,inFormIV.]

7.Openingofnewplacesofbusiness.AnapplicationbyaCooperativeBankforpermissiontoopen
anewplaceofbusinessorchangethelocationofanexistingplaceofbusinessundersection23ofthe
Actshallbesubmitted9[inFormV
(a)inthecaseofaprimaryCooperativeBanktotheprincipalofficeoftheReserveBankand
(b)inthecaseofaCentralCooperativeBankoraStateCooperativeBanktotheofficeofthe
NationalBanksituatedintheStateinwhichthecooperativehasitsprincipalofficeortosuch
otherofficeoftheNationalBankasmaybespecifiedbytheNationalBank,andanadvancecopy
oftheapplicationbesubmitteddirectlytotheprincipalofficeoftheReserveBank.]

10[8.AlistrelatingtotheofficesofaCooperativeBankshallbesent,withinaperiodofonemonth
fromthecloseofeveryquarter,inFormVI,
(a)byaprimaryCooperativeBanktotheprincipalofficeoftheReserveBankand
(b)byaCentralCooperativeBankoraStateCooperativeBanktotheprincipalofficeofthe
ReserveBankandalsotosuchofficeoftheNationalBankasmaybespecifiedbytheNational
Bank.]

11 [9.Otherreturns.Thereturnstobesubmittedundersection26andsubsection

(1)ofsection27shallbeinFormVIIIandFormIXrespectively].

10.Mannerofpublicationofaccountsandbalancesheet.Thebalancesheetandprofitandloss
accountpreparedinpursuanceofsection29oftheActtogetherwiththeauditorsreportshallbe
publishedwithinaperiodofninemonthsfromtheendoftheperiodtowhichtheyrelateina
newspaperwhichisincirculationattheplacewheretheCooperativeBankhasitsprincipaloffice.
Explanation1.Forthepurposesofthisrule,theexpressionnewspapermeansanynewspaperor
journalpublishedatleastonceaweekbutdoesnotincludeajournalotherthanabanking,
commercial,financialoreconomicjournal.12[Explanation2.InthecaseofaCooperativeBankthe
depositliabilitiesofwhichasattheendoftheperiodtowhichtheaccountsandbalancesheetrelate
donotexceed13[twenty]lakhsofrupees,adisplay,inaconspicuousplaceattheprincipaloffice,and
ateveryplaceofbusinessofsuchbank,ofacopyofthebalancesheetandprofitandlossaccount
withtheauditorsreportshallbedeemedtoconstitutecompliancewiththeprovisionofthisrule.]

14[11.Mannerofholdinginquiries.

(1)Forthepurposeofholdinganinquiryundersubsection(2)ofsection47AoftheAct,the
ReserveBankshallappointinwritingoneofitsofficers(hereinafterreferredtoasthesaid
Officer)forholdingtheinquiryandshallalsoauthorisehimtoexercisethepowersconferredon
theReserveBankundersubsection(3)ofthesaidsection47A.
(2)ThesaidofficeshallsendbyregisteredposttothecooperativebankatitsRegisteredofficeor
principaloffice,astatementgivingsufficientparticularsofthecontraventionordefaultofthe
naturereferredtoinsubsection(3)orsubsection(4)ofsection46oftheAct.
(3)ACooperativeBanktowhichastatementisaddressedundersubrule(2),shall,beforethe
expiryof30daysfromthereceiptofsuchstatement,sendinwritingtothesaidofficeritsanswer
tothesaidstatementtogetherwithparticularsofthedocumentaryorotherevidenceonwhichit
proposestorely.
(4)Thesaidofficershallappointadateandplaceforholdingtheinquiryandintimatethesame
byregisteredposttotheCooperativeBankatitsRegisteredofficeorprincipalofficeandthedate
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3/11/2017 TheBankingRegulation(CooperativeSocieties)Rules,1966

soappointedshallnotbeearlierthanthirtydaysfromthedateofissueofthestatementtotheCo
operativeBank.
(5)Attheinquiry,theCooperativeBankshallbeentitledtoberepresentedbyanyofitsDirectors
orofficersasitsauthorisedrepresentativebutshallnotbeentitledtoberepresentedbyalegal
practitioner.
(6)Attheinquiry,anofficeroftheReserveBank,notbeingtheofficerconductingtheinquiry,
shallpresentthecasefortheReserveBankincludingevidenceonthematter.Thereafter,the
authorisedrepresentativeoftheCooperativeBankshallpresentitscaseincludingtheevidencein
relationthereto.
(7)Onthedateappointedforthepurposeundersubrule(4),theCooperativeBankshallbe
representedattheinquirybyitsauthorisedrepresentativeandthesaidofficershallcommence
theinquiryonthesameday,unless,forreasonstoberecordedinwritingandcommunicatedto
theCooperativeBankinpersonorbyregisteredpost,headjournsthehearingtoalaterdate.
Suchdateshallnotbeearlierthanfifteendaysfromthedateofissueofsuchcommunicationto
theCooperativeBank.
(8)IncasetheauthorisedrepresentativeoftheCooperativeBankfailstoappearbeforethesaid
officerontheappointeddateorsuchadjourneddate,asthecasemaybe,withoutsufficientcause,
thesaidofficershallproceedwiththeinquiryexparteandgivehisfindingsonthebasisofthe
evidenceplacedbeforehimbytheofficeroftheReserveBankpresentingthecase.
(9)Oncetheinquiryhascommenced,itshallbecontinuedondaytodaybasis,including
holidays,untilallthewitnessfortheReserveBankandtheCooperativeBankhavebeen
examined,unlessthesaidofficer,forreasonstoberecordedinwriting,decidesthatadjournment
oftheinquiryisnecessarybeyondthefollowingday.
(10)TheauthorisedrepresentativeoftheCooperativeBankandtheofficeroftheReserveBank
presentingthecasemaycrossexaminethewitnessesotherthanawitnessproducedbythe
representativeoftheCooperativeBankor,asthecasemaybe,bytheofficeroftheReserveBank
presentingthecase.
(11)Aftertheconclusionoftheinquiry,thesaidofficershallrecordhisfindingsandsubmitthe
entirerecordtotheReserveBank.]

15[12.]BankingCompaniesRules,1949,nottoapply.NothingcontainedintheBanking
CompaniesRules,1949,shallapplytocooperativesocieties.
TheBankingRegulation(CooperativeSocieties)Rules,19661[FORMVII]11.formsVII
omittedbyS.O.1326,dated23rdMay,1974(w.e.f.161974)

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