A Special provision for Primary Agricultural Co-operative Credit Societies, Central Co-operative Banks and Apex Bank

§29-A

Summary

3[(29-A.) Notwithstanding anything to the contrary in any other provision of this Act, rules and Bye-laws of the society, the Committee of Management of a Primary Agricultural Co-operative Credit Society or a Central Co-operative Bank or an apex bank shall exercise such powers and perform such duties as may be necessary and expedient for the purpose of carrying out its functions under this Act which shall include,- (a) the power to,- (i) admit members and dispose of applications for shares ; (ii) interpret the organizational objectives and set specific goals to be achieved towards those objectives ; (iii) prepare annual and supplementary budgets and get the approval of the General Body thereto ; (iv) raise and invest funds in accordance with the bye-laws ; (v) sanction all expenditure above the prescribed level, and the plan of capital development for the coming year or years ; (vi) enforce any debt or demand of the society and institute, defend or compromise legal proceeding for or against the society ; 3[(vii) asses the existing man power resources and future requirements in the context of changes that might have taken to ensure availability of the required resources and consider and remover constraints in the process or progress of manpower planning at least once at the beginning of every year ; (viii) appoint officers or other staff to conduct the business of the society and define inter alia their duties, service conditions, leave concessions and disciplinary matters subject to the provisions of this Act, the rules and the bye-laws ; (ix) arrange for the education and training of members and employee and review the programmes and progress, relating thereto, at least once at the beginning of every year ; (x) dispose of applications for loans, fix rate of interest subject to the direction of the Reserve Bank of India and the National Bank for Agriculture and Rural Development and determine securities to be taken for such loans ; (xi) appoint Sub-Committees, as may be considered necessary ; (xii) make periodical appraisal of its operation; (xiii) acquire, hold and dispose of the properties in the prescribed manner ; (xiv) take loans from any financial institution regulated by the Reserve Bank of India and refinance from National Bank for Agriculture and Rural Development or any other refinancing agency directly or through any financial institution regulated by the Reserve Bank of India and not necessarily form only the federal tier to which it is affiliated, and similarly, placing its deposits with, or making investments in, any regulated financial institution and not necessarily with only the federal tire to which it is affiliated ; (xv) decide issues relating to affiliation and disaffiliation with any federal structure including entry and exit at any level; (xvi) decide its area of operation according to the business requirement ; 4[ (xvi-A) decide its Internal Control Systems, appointment of auditors and compensation for the audit,] (xvii) take such other measures or do such other act as may be prescribed or required under this Act, the rules and the Bye-laws; and (b) the duty of- (i) observing, in all affairs under the provisions of this Act, the rules and the bye-laws; (ii) causing- 3[(A) proper receipt and disbursement of moneys of the society and maintenance of the account, assets and liabilities of the society; (B) preparation of Annual Report of the society for every year; (C) preparation of Annual Returns prescribed by the Registrar; (D) preparation of the statement of account required at audit and placement of the same before the auditors; (E) preparation of all other statement and returns and submission of the same to the Registrar; (F) maintenance of accounts of the society regularly in proper books ; (G) maintenance of the register of members up-to-date; (iii) formulating recommendation in accordance with the guidelines of National Bank, if any, for appropriation of the net profits declared as distributable under the provisions of this Act and the rules and submitting the same to General Body; (iv) facilitating the inspections, inquiries and audits under this Act and considering the Audit, inspection and Inquiry Reports received from the concerned authority and furnishing compliance thereto in accordance with the provisions of this Act and the rules ; (v) convening the meetings and special meetings of the General Body in time; (vi) watching that the loans and advances are utilized for the purposes for which they are meant and also that they are repaid punctually; (vii) examining and taking prompt action in cases of all arrears and defaults in repayment of loans and advances; (viii) liaisoning with the members in all matters if the society and ensuring the observance of the co-operative principles; (ix) making arrangements for holding elections in time; and (x) performing such other functions as may be entrusted to it by the General Body or required by or under this Act, the rule and the bye-laws. (C) (i) A member of the Committee of Management shall be disqualified for continuing in the Committee if he is representing a noncredit society on the board of a Central Co-operative Bank or apex bank and the society has committed a default for a period exceeding 90 days. (ii) A person who is a defaulting member or office-bearer of a defaulting Primary Agricultural Co-operative Credit Society shall not be eligible to be elected to the board of the society or the bank as the case may be, or continue on the Board for more than one year unless the default is cleared. (D) " A Primary Agricultural Co-operative Credit Society shall abide by all such directions regarding financial norms as may be prescribed by the Registrar in consultation with the National Bank."]3

3[(29-A.) Notwithstanding anything to the contrary in any other provision of this Act, rules and Bye-laws of the society, the Committee of Management of a Primary Agricultural Co-operative Credit Society or a Central Co-operative Bank or an apex bank shall exercise such powers and perform such duties as may be necessary and expedient for the purpose of carrying out its functions under this Act which shall include,- (a) the power to,- (i) admit members and dispose of applications for shares ; (ii) interpret the organizational objectives and set specific goals to be achieved towards those objectives ; (iii) prepare annual and supplementary budgets and get the approval of the General Body thereto ; (iv) raise and invest funds in accordance with the bye-laws ; (v) sanction all expenditure above the prescribed level, and the plan of capital development for the coming year or years ; (vi) enforce any debt or demand of the society and institute, defend or compromise legal proceeding for or against the society ; 3[(vii) asses the existing man power resources and future requirements in the context of changes that might have taken to ensure availability of the required resources and consider and remover constraints in the process or progress of manpower planning at least once at the beginning of every year ; (viii) appoint officers or other staff to conduct the business of the society and define inter alia their duties, service conditions, leave concessions and disciplinary matters subject to the provisions of this Act, the rules and the bye-laws ; (ix) arrange for the education and training of members and employee and review the programmes and progress, relating thereto, at least once at the beginning of every year ; (x) dispose of applications for loans, fix rate of interest subject to the direction of the Reserve Bank of India and the National Bank for Agriculture and Rural Development and determine securities to be taken for such loans ; (xi) appoint Sub-Committees, as may be considered necessary ; (xii) make periodical appraisal of its operation; (xiii) acquire, hold and dispose of the properties in the prescribed manner ; (xiv) take loans from any financial institution regulated by the Reserve Bank of India and refinance from National Bank for Agriculture and Rural Development or any other refinancing agency directly or through any financial institution regulated by the Reserve Bank of India and not necessarily form only the federal tier to which it is affiliated, and similarly, placing its deposits with, or making investments in, any regulated financial institution and not necessarily with only the federal tire to which it is affiliated ; (xv) decide issues relating to affiliation and disaffiliation with any federal structure including entry and exit at any level; (xvi) decide its area of operation according to the business requirement ; 4[ (xvi-A) decide its Internal Control Systems, appointment of auditors and compensation for the audit,] (xvii) take such other measures or do such other act as may be prescribed or required under this Act, the rules and the Bye-laws; and (b) the duty of- (i) observing, in all affairs under the provisions of this Act, the rules and the bye-laws; (ii) causing- 3[(A) proper receipt and disbursement of moneys of the society and maintenance of the account, assets and liabilities of the society; (B) preparation of Annual Report of the society for every year; (C) preparation of Annual Returns prescribed by the Registrar; (D) preparation of the statement of account required at audit and placement of the same before the auditors; (E) preparation of all other statement and returns and submission of the same to the Registrar; (F) maintenance of accounts of the society regularly in proper books ; (G) maintenance of the register of members up-to-date; (iii) formulating recommendation in accordance with the guidelines of National Bank, if any, for appropriation of the net profits declared as distributable under the provisions of this Act and the rules and submitting the same to General Body; (iv) facilitating the inspections, inquiries and audits under this Act and considering the Audit, inspection and Inquiry Reports received from the concerned authority and furnishing compliance thereto in accordance with the provisions of this Act and the rules ; (v) convening the meetings and special meetings of the General Body in time; (vi) watching that the loans and advances are utilized for the purposes for which they are meant and also that they are repaid punctually; (vii) examining and taking prompt action in cases of all arrears and defaults in repayment of loans and advances; (viii) liaisoning with the members in all matters if the society and ensuring the observance of the co-operative principles; (ix) making arrangements for holding elections in time; and (x) performing such other functions as may be entrusted to it by the General Body or required by or under this Act, the rule and the bye-laws. (C) (i) A member of the Committee of Management shall be disqualified for continuing in the Committee if he is representing a noncredit society on the board of a Central Co-operative Bank or apex bank and the society has committed a default for a period exceeding 90 days. (ii) A person who is a defaulting member or office-bearer of a defaulting Primary Agricultural Co-operative Credit Society shall not be eligible to be elected to the board of the society or the bank as the case may be, or continue on the Board for more than one year unless the default is cleared. (D) " A Primary Agricultural Co-operative Credit Society shall abide by all such directions regarding financial norms as may be prescribed by the Registrar in consultation with the National Bank."]3

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