Nature of Cooperative Bank
Cooperative banking is retail and commercial banking
organized on a cooperative basis. Cooperative banking
institutions take deposits and lend money in most parts of
the world. Cooperative banking, as discussed here,
includes retail banking carried out by credit unions,
mutual savings banks, building societiesand cooperatives,
as well as commercial banking services provided
by mutual organizations (such as cooperative federations)
to cooperative businesses.
2
Types of Co-operative Banks
 The co-operative banks are small-sized units which
operate both in urban and non-urban centers. They
finance small borrowers in industrial and trade sectors
besides professional and salary classes. Regulated by
the Reserve Bank of India, they are governed by the
Banking Regulations Act 1949 and banking laws (cooperative societies) act, 1965. The co-operative
banking structure in India is divided into following 5
categories:
3
 State Co-operative Banks
 The state co-operative bank is a federation of central
co-operative bank and acts as a watchdog of the cooperative banking structure in the state. Its funds are
obtained from share capital, deposits, loans and
overdrafts from the Reserve Bank of India. The state
co-operative banks lend money to central co-operative
banks and primary societies and not directly to the
farmers.
4
 Central Co-operative Banks
 These are the federations of primary credit societies in
a district and are of two types-those having a
membership of primary societies only and those
having a membership of societies as well as
individuals. The funds of the bank consist of share
capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks provide
finance to member societies within the limits of the
borrowing capacity of societies. They also conduct all
the business of a joint stock bank.
5
 Urban Co-operative Banks
 The term Urban Co-operative Banks (UCBs), though
not formally defined, refers to primary co-operative
banks located in urban and semi-urban areas. These
banks, till 1996, were allowed to lend money only for
non-agricultural purposes. This distinction does not
hold today. These banks were traditionally centered on
communities, localities, work place groups. They
essentially lend to small borrowers and businesses.
Today, their scope of operations has widened
considerably.
6
 Land Development Banks
 The Land development banks are organized in 3 tiers
namely; state, central, and primary level and they meet the
long term credit requirements of the farmers for
developmental purposes. The state land development
banks oversee, the primary land development banks
situated in the districts and tehsil areas in the state. They
are governed both by the state government and Reserve
Bank of India. Recently, the supervision of land
development banks has been assumed by National Bank
for Agriculture and Rural development (NABARD). The
sources of funds for these banks are the debentures
subscribed by both central and state government. These
banks do not accept deposits from the general public
7
 Primary Co-operative Credit Society
 The
primary co-operative credit society is an
association of borrowers and non-borrowers residing
in a particular locality. The funds of the society are
derived from the share capital and deposits of
members and loans from central co-operative banks.
The borrowing powers of the members as well as of the
society are fixed. The loans are given to members for
the purchase of cattle, fodder, fertilizers, pesticides,
etc.
8
 The origins of the urban co-operative banking movement in India can
be traced to the close of nineteenth century. Inspired by the success of
the experiments related to the co-operative movement in Britain and
the co-operative credit movement in Germany, such societies were set
up in India. Co-operative societies are based on the principles of
cooperation, mutual help, democratic decision making, and open
membership. Co-operatives represented a new and alternative
approach to organization as against proprietary firms, partnership
firms, and joint stock companies which represent the dominant form of
commercial organization. They mainly rely upon deposits from
members and non-members and in case of need, they get finance from
either the district central co-operative bank to which they are affiliated
or from the apex co-operative bank if they work in big cities where the
apex bank has its Head Office. They provide credit to small scale
industrialists, salaried employees, and other urban and semi-urban
residents.
9
Prudential Norms applicable to Co-operative Banks &
Co-operative Credit Societies
 General :
 Non Performing Assets (NPA)
 Asset Classification
 Income Recognition
 Diversion in Asset Classification
10
 Non Performing Assets : 1) Interest & / or Installment remain overdue for a
period of 90 days
 2) Account remains out of order for a period more than
90 days in respect of ODCC
 3) Bill remains overdue for a period more than 90 days
 4) In case of Direct Agriculture Advances remains
overdue for two crop seasons (for long duration crop
overdue for one crop season)
 5) Any amount to be received remain overdue for a
period of more than 90 days
11
Prudential Norms applicable to Co-operative Banks & Cooperative Credit Societies
 NPA
- An asset becomes non performing when it ceases to
generate income for the bank.
- 90 Days overdue norms to identification of NPA’s
have been made applicable from 31.03.2004
- Tier I banks were permitted to classify loan accounts
as NPA based on 180 days delinquency norm instead of
90 days norm. This relaxation as in force up to
31.03.2009.
- Accordingly w. e. f 01.04.2009 all banks would classify
NPA on 90 days delinquency norm.
12
 Identification of Assets as NPA should be done on an
on-going basis.
 Charging of Interest at monthly rest.
 Record of Recovery
 Treatment of NPA is borrower wise & not facility wise
 Agriculture Advance - Default in repayment due to
natural calamites
 Housing loan to Staff
 Credit facilities guaranteed by Central/State Govt.
 Project Finance
 Prudential guidelines on restructuring of advances
 Other Advances
13
 Recognition of income on investment treated as NPA.
 NPA reporting to RBI
14
 Assets Classification
- Bank should classify their assets into following broad
groups:
(i) Standard Assets
(ii) Sub-Standard Assets
(iii) Doubtful Assets
(iv) Loss Assets
 Income Recognition has to be based on record of
recovery
 Reversal of Income on accounts becoming NPA’s
 Partial recovery of NPA’s
15
 Provisioning Norms
 Standard Assets
Category of Standard Assets
Rate of Provisioning
Tier II
Tier I
Direct Advances to Agriculture
& SME Sectors
0.25%
0.25%
Commercial Real Estate (CRE)
sector
1.00 %
1.00 %
Commercial Real Estate Residential Housing sector
(CRE-RH)
0.75 %
0.75 %
All other loans and advances
not included
0.40 %
0.25%
16
 Provisioning on NPA’s
Category of NPA
Rate of Provisioning
Sub Standard
10%
Doubtful up to 1 Year
20%
Doubtful 1 to 3 Year
30%
Doubtful above 3 years
(w. e. f. 01.04.2010)
100%
Loss Assets
100%
17
Prudential norms on Capital Adequacy
 Statutory Requirements
 Share linking to Borrowings
 Capital Adequacy Norms
 Tier - I Capital
 Tier - II Capital
 Risk Weight for Computation of CRAR
 Issue of Preference Shares
 Issuance of Long Term (Subordinated) Deposits
18
Laws applicable to Cooperative Banks
 The Banking Regulation Act 1949
 The Reserve Bank of India Act 1934
 Prevention of Money Laundering Act 2002
 Other Acts Applicable
19
Banking Regulation Act 1949
 Section 6 :- Forms of Business in which banking
companies may engage
Now as per notification of GoI, Hire Purchase &
Equipment Leasing is allowed. Also Insurance
Business may be undertaken by UCB’s.
 Section 8 :- Prohibition of Trading
No Banking Company shall directly or indirectly deal
in buying or selling of goods except in connection with
the realization of security.
20
 Section 9 Disposal of Non Banking Asset
No banking company shall hold any immovable
property except those required for it’s a own use for
any period exceeding 7 years
 Section 10A: Board of Directors to include persons
with professional or other experience.
 Section 11 :- No co-operative bank shall commence or
carry on the business of banking in India unless the
aggregate value of its paid up capital and reserves is
not less than Rupees One Lac.
21
 Section 14 A:- No co-operative bank shall create a
floating charge on the under taking or any of it’s a
property. (Unless the creation of such charge is
certified in writing by RBI as not being detrimental to
the interest of depositors of such bank.)
 Section 18:- Cash Reserve
Every co-operative bank shall maintain in India by way
of Cash Reserve, a sum equivalent to at least 4% of
total of it’s time & demand liabilities as on last Friday
of Second preceding forth night & submit to RBI
before 15th day of every month a return showing the
particulars.
22
 Section 20:- Restrictions on Loans & Advances to
Directors. (with effect from 01.10.2003)
 Exemption a) Employee related loan to staff director
b) Loan to directors against Fixed deposit and LIP
 Section 20A:- Restriction of Power to remit Debts
Co-operative banks would have to obtain prior
approval of RBI to remit any debt due to it by any of it’s
past or present directors.
 Section 21 :- Power of RBI to control advances
(Purpose / Margin / Limit / Rate of interest)
23
 Section 24:- Every co-operative bank shall maintain in
India by way of Assets, a sum equivalent to at least
21.50% (Not exceeding 40%) of total of it’s time &
demand liabilities as on last Friday of Second
preceding forth night & submit to RBI before 20th day
of every month showing the particulars.
 Section 26:- Return of Unclaimed Deposits
Every Co-operative bank within 30 days from the close
of each calendar year submit a return of all accounts
which have not been operated upon for 10 years.
(As per amended provision, every bank has to transfer
the Unclaimed deposit of more than 10 years to RBI as
Depositors Education & Awareness Fund every month)
24
 Section 27 :- Every bank is required to submit to RBI a
return showing it’s a Assets and Liabilities as at last
Friday of every month, within next month.
 Section 29 & 31 :- Banks are required to prepare their
P&L account and B/S before 30th Sept. of each year. Also
required to submit 3 copies along with Statutory Audit
Reports, signed by principal officer of the bank and at
least 3 directors.
Such financial statements should be published in local
news paper within a period of 9 months from the end of
the period to which they relate. (i.e. before 31st Dec.)
25
 Section 35:- Inspection
 Section 35A:- Power of RBI to give directions
 Section 45:- Power of RBI to apply to Central Govt. for
suspension of business of co-operative bank or to
order moratorium.
 Section 46: Penalties
26
The Reserve Bank of India Act 1934
 22. Right to issue bank notes.
 (1) The Bank shall have the sole right to issue bank notes in
[India], and may, for a period which shall be fixed by the
[Central Government] on the recommendation of the
Central Board, issue currency notes of the Government of
India supplied to it by the [Central Government], and the
provisions of this Act applicable to bank notes shall, unless
a contrary intention appears, apply to all currency notes of
the Government of India issued either by the [Central
Government] or by the Bank in like manner as if such
currency notes were bank notes, and references in this Act
to bank notes shall be construed accordingly.
27
 (2) On and from the date on which this Chapter comes
into force the [Central Government] shall not issue any
currency notes.
 24. Denominations of notes.
 (1) Subject to the provisions of sub-section (2), bank
notes shall be of the denominational values of two
rupees, five rupees, ten rupees, twenty rupees, fifty
rupees, one hundred rupees, five hundred rupees, one
thousand rupees, five thousand rupees and ten
thousand rupees or of such other denominational
values, not exceeding ten thousand rupees, as the
Central Government may, on the recommendation of
the Central Board, specify in this behalf.
28
 (2)
The Central Government may, on the
recommendation of the Central Board, direct the nonissue or the discontinuance of issue of bank notes of
such denominational values as it may specify in this
behalf.]
 26. Legal tender character of notes.
 (1) Subject to the provisions of sub-section (2), every
bank note shall be legal tender at any place in [India]
in payment or on account for the amount expressed
therein, and shall be guaranteed by the [Central
Government].

29
 (2) On recommendation of the Central Board the
[Central Government] may, by notification in the
Gazette of India, declare that, with effect from such
date as may be specified in the notification, any series
of bank notes of any denomination shall cease to be
legal tender [save at such office or agency of the Bank
and to such extent as may be specified in the
notification].
30
 42. Cash reserves of scheduled banks to be kept
with the Bank.
 [(1) Every bank included in the Second Schedule shall
maintain with the Bank an average daily balance the
amount of which shall not be less than [such per cent.
of the total of the demand and time liabilities in India
of such bank as shown in the return referred to in subsection (2), as the Bank may from time to time, having
regard to the needs of securing the monetary stability
in the country, notify in the Gazette of India]:
31
 (1A) Notwithstanding anything contained in sub-section
(1), the Bank may, by notification in the Gazette of India,
direct that every scheduled bank shall, with effect from
such date as may be specified in the notification, maintain
with the Bank, in addition to the balance prescribed by or
under sub-section (1), an additional average daily balance
the amount of which shall not be less than the 1[rate
specified in the notification, such additional balance being
calculated with reference to the excess of the total of the
demand and time liabilities of the bank as shown in the
return referred to in sub-section (2) over the total of its
demand and time liabilities] at the close of business on the
date specified in the notification as shown by such return
so however, that the additional balance shall, in no case, be
more than such excess
32
 (2A) Where the last Friday of a month is not an
alternate Friday for the purpose of sub-section (2),
every scheduled bank shall send to the Bank, a special
return giving the details specified in sub-section (2) as
at the close of business on such last Friday or where
such last Friday is a public holiday under the
Negotiable Instruments Act, 1881 as at the close of
business on the preceding working day and such
return shall be sent not later than seven days after the
date to which it relates.
33
 (3) If the average daily balance held at the Bank by a
scheduled bank during any [fortnight] is below the
minimum prescribed by or under sub-section (1) or subsection (1A), such Scheduled bank shall be liable to pay to
the Bank in respect of that [fortnight] penal interest at a
rate of three per cent, above the bank rate on the amount
by which such balance with the Bank falls short of the
prescribed minimum, and if during the next succeeding
[fortnight], such average daily balance is still below the
prescribed minimum the rates of penal interest shall be
increased to a rate of five per cent, above the bank rate in
respect of that [fortnight) and each subsequent [fortnight)
during which the default continues on the amount by
which such balance at the Bank falls short of the prescribed
minimum.]
34
 (3A) When under the provisions of sub-section (3) penal
interest at the increased rate of five per cent, above the
bank rate has become payable by a scheduled bank, 1[if
thereafter the average daily balance held at the Bank during
the next succeeding [fortnight] is still below the prescribed
minimum.
 (a) every director, manager or secretary of the scheduled
bank, who is knowingly and willfully a party to the default,
shall be punishable with fine which may extend to five
hundred rupees and with a further fine which may extend
to five hundred rupees for each subsequent [fortnight]
during which the default continues, and
 (b) the Bank may prohibit the scheduled bank from
receiving after the said [fortnight] any fresh deposit,]
35
 and, if default is made by the scheduled bank in
complying with the prohibition referred to in clause
(b), every director and officer of the scheduled bank
who is knowingly and willfully a party to such default
or who through negligence or otherwise contributes to
such default shall in respect of each such default be
punishable with fine which may extend to five
hundred rupees and with a further fine which may
extend to five hundred rupees for each day after the
first on which a deposit received in contravention of
such prohibition is retained by the scheduled bank.
 Explanation.– In this sub-section ‘‘officer’’ includes a
manager, secretary, branch manager, and branch
secretary.
36
 (4) Any scheduled bank failing to comply with the
provisions of subsection (2) [shall be liable to pay to the
Bank] a penalty of one hundred rupees for each day during
which the failure continues.
(5) (a) The penalties imposed by sub-sections (3) and (4)
shall be payable within a period of fourteen days from the
date on which a notice issued by the Bank demanding the
payment of the same is served on the scheduled bank, and
in the event of a failure of the scheduled bank to pay the
same within such period, may be levied by a direction of
the principal civil court having jurisdiction in the area
where an office of the defaulting bank is situated, such
direction to be made only upon an application made in this
behalf to the court by the Bank;
37
 (b) when the court makes a direction under clause (a),
it shall issue a certificate specifying the sum payable by
the scheduled bank and every such certificate shall be
enforceable in the same manner as if it were a decree
made by the court in a suit;
 (c) notwithstanding anything contained in this
section, if the Bank is satisfied that the defaulting
bank had sufficient cause for its failure to comply with
the provisions of sub-sections (1), (1A) or (2), it may
not demand the payment of the penal interest or the
penalty, as the case may be.]
38
 (6) The Bank shall, save as hereinafter provided, by




notification in the Gazette of India,–
(a) direct the inclusion in the Second Schedule of any bank
not already so included which carries on the business of
banking [in India] and which–
(i) has a paid-up capital and reserves of an aggregate value of
not less than five lakhs of rupees, and
(ii) satisfies the Bank that its affairs are not being conducted
in a manner detrimental to the interests of its depositors, and
(iii) is a State co-operative bank or a company as defined in
[section 3 of the Companies Act, 1956, or an institution
notified by the Central Government in this behalf] or a
corporation or a company incorporated by or under any law in
force in any place [outside India];
39
 (b) direct the exclusion from that Schedule of any
scheduled bank.–
 (i) the aggregate value of whose paid-up capital and
reserves becomes at any time less than five lakhs of
rupees, or
 (ii) which is, in the opinion of the Bank after making
an inspection under section 35 of the [Banking
Regulation Act, 1949], conducting its affairs to the
detriment of the interests of its depositors, or
 (iii) which goes into liquidation or otherwise ceases to
carry on banking business:
40
 Provided that the Bank may, on application of the
scheduled bank concerned and subject to such
conditions, if any, as it may impose, defer the making
of a direction under sub-clause (i) or sub-clause (ii) of
clause (b) for such period as the Bank considers
reasonable to give the scheduled bank an opportunity
of increasing the aggregate value of its paid-up capital
and reserves to not less than five lakhs of rupees or, as
the case may be, of removing the defects in the
conduct of its affairs:
41
 (c) alter the description in that Schedule whenever any
scheduled bank changes its name.
 Explanation.– In this sub-section the expression
‘‘value’’ means the real or exchangeable value and not
the nominal value which may be shown in the books of
the bank concerned; and if any dispute arises in
computing the aggregate value of the paid-up capital
and reserves of a bank, a determination thereof by the
Bank shall be final for the purposes of this subsection.]
42
 (6A) In considering whether a State co-operative bank or a
regional rural bank should be included in or excluded from
the Second Schedule, it shall be competent for the Bank to act
on a certificate from the National Bank on the question
whether or not a State co-operative bank or a regional rural
bank, as the case may be, satisfies the requirements as to
paid-up capital and reserves or whether its affairs are not
being conducted in a manner detrimental to the interests of
its depositors.
 (7) The Bank may, for such period and subject to such
conditions as may be specified, grant to any scheduled bank
such exemptions from the provisions of this section as it
thinks fit with reference to all or any of its offices or with
reference to the whole or any part of its assets and liabilities.
43
 45E. Disclosure of information prohibited.
 1) Any credit information contained in any statement
submitted by a banking company under section 45C or
furnished by the Bank to any banking company under
section 45D, shall be treated as confidential and shall
not, except for the purposes of this Chapter, be
published or otherwise disclosed.
 (2) Nothing in this section shall apply to –
 (a) the disclosure by any banking company, with the
previous permission of the Bank, of any information
furnished to the Bank under section 45C:
44
 (b) the publication by the Bank, if it considers necessary in
the public interest so to do, of any information collected by
it under section 45C, in such consolidated form as it may
think fit without disclosing the name of any banking
company or its borrowers:
 (c) the disclosure or publication by the banking company
or by the Bank of any credit information to any other
banking company or in accordance with the practice and
usage customary among bankers or as permitted or
required under any other law:
 Provided that any credit information received by a banking
company under this clause shall not be published except in
accordance with the practice and usage customary among
bankers or as permitted or required under any other law.]
45
 (d) the disclosures of any credit information under the
Credit Information Companies (Regulation) Act,
2005.]
 (3) Notwithstanding anything contained in any law for
the time being in force, no court, tribunal or other
authority shall compel the Bank or any banking
company to produce or to give inspection of any
statement submitted by that banking company under
section 45C or to disclose any credit information
furnished by the Bank to that banking company under
section 45D.
46
Prevention of Money Laundering Act, 2002
 Section 3 - Offence of money-laundering.—
Whosoever directly or indirectly
 Attempts to indulge or knowingly assists or knowingly
is a party or is actually involved in any process or
activity connected proceeds of crime including its
concealment, possession, acquisition or use and
projecting or claiming it as untainted property shall be
guilty of offence of money-laundering.
47
 4. Punishment for money-laundering.—Whoever
commits the offence of money-laundering shall be
punishable with rigorous imprisonment for a term
which shall not be less than three years but which may
extend to seven years and shall also be liable to fine.
 12. Reporting entity to maintain records.—
 (1) Every reporting entity
Shall—(a) maintain a record of all transactions,
including information relating to transactions covered
under clause (b), in such manner as to enable it to
reconstruct individual transactions.
48
 (b) furnish to the Director within such time as may be
prescribed, information relating to such transactions,
whether attempted or executed, the nature and value
of which may be prescribed;
 (c) verify the identity of its clients in such manner and
subject to such conditions, as may be prescribed;
 (d) identify the beneficial owner, if any, of such of its
clients, as may be prescribed;
 (e) maintain record of documents evidencing identity
of its clients and beneficial owners as well as account
files and business correspondence relating to its
clients.
49
 (2) Every information maintained, furnished or verified,
save as otherwise provided under any law for the time
being in force, shall be kept confidential.
 (3) The records referred to in clause (a) of sub-section (1)
shall be maintained for a period of five years from the date
of transaction between a client and the reporting entity.
 (4) The records referred to in clause (e) of sub-section (1)
shall be maintained for a period of five years after the
business relationship between a client and the reporting
entity has ended or the account has been closed, whichever
is later.
 (5) The Central Government may, by notification, exempt
any reporting entity or class of reporting entities from any
obligation under this Chapter.]
50
 15. Procedure and manner of furnishing information
by reporting entities.—The Central Government may,
in consultation with the Reserve Bank of India,
prescribe the procedure and the manner of maintaining
and furnishing information by a reporting entity under
sub-section (1) of section 12 for the purpose of
implementing the provisions of this Act.]
 63. Punishment for false information or failure to give
information, etc.—
 (1) Any person willfully and maliciously giving false
information and so causing an arrest or a search to be made
under this Act shall on conviction be liable for
imprisonment for a term which may extend to two years or
with fine which may extend to fifty thousand rupees or
both
51
 (2) If any person,—
 (a) being legally bound to state the truth of any matter
relating to an offence under section 3, refuses to answer any
question put to him by an authority in the exercise of its
powers under this Act; or
 (b) refuses to sign any statement made by him in the course of
any proceedings under this Act, which an authority may
legally require to sign; or
 (c) to whom a summon is issued under section 50 either to
attend to give evidence or produce books of account or other
documents at a certain place and time, omits to attend or
produce books of account or documents at the place or time,
he shall pay, by way of penalty, a sum which shall not be less
than five hundred rupees but which may extend to ten
thousand rupees for each such default or failure.
52
Prevention of Money Laundering Rules
 2. Definitions.—(1) In these rules, unless the context
otherwise requires,—
 (d) “officially valid document” means the passport, the
driving licence, the Permanent Account Number (PAN)
Card, the Voter’s Identity Card issued by Election
Commission of India, job card issued by NREGA duly
signed by an officer of the State Government, the letter
issued by the Unique Identification Authority of India
containing details of name, address and Aadhaar number
or any other document as notified by the Central
Government in consultation with the in consultation with
the [Regulator]
53
 Provided that where simplified measures are applied
for verifying the identity of the clients the following
documents shall be deemed to be officially valid
documents:—
 (a) identity card with applicant’s Photograph issued by
Central/State Government Departments,
Statutory/Regulatory Authorities, Public Sector
Undertakings, Scheduled Commercial Banks, and
Public Financial Institutions;
 (b) letter issued by a gazetted officer, with a duly
attested photograph of the person.
54
 (fb) “small account” means a savings account in a
banking company where—
 (i) the aggregate of all credits in a financial year does
not exceed rupees one lakh,
 (ii) the aggregate of all withdrawals and transfers in a
month does not exceed rupees ten thousand, and
 (iii) the balance at any point of time does not exceed
rupees fifty thousand.
55
 (g) “suspicious transaction” means a transaction
referred to in clause (h), including an attempted
transaction, whether or not made in cash, which to a
person acting in good faith— (a) gives rise to a
reasonable ground of suspicion that it may involve
proceeds of an offence specified in the Schedule to the
Act, regardless of the value involved; or b) appears to
be made in circumstances of unusual or unjustified
complexity; or (c) appears to have no economic
rationale or bona fide purpose; or(d) gives rise to a
reasonable ground of suspicion that it may involve
financing of the activities relating to terrorism
56
 3. Maintenance of records of transactions (nature
and value).—(1) Every reporting entity shall
maintain the record of all transactions including, the
record of—
 (A) all cash transactions of the value of more than ten
lakh rupees or its equivalent in foreign currency;
 (B) all series of cash transactions integrally connected
to each other which have been individually valued
below rupees ten lakh or its equivalent in foreign
currency where such series of transactions have taken
place within a month and the monthly aggregate
exceeds an amount of ten lakh rupees or its equivalent
in foreign currency
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 1[(BA) all transactions involving receipts by non-profit
organisations of value more than rupees ten lakh, or its
equivalent in foreign currency;]
 2[(C) all cash transactions where forged or counterfeit
currency notes or bank notes have been used as
genuine or where any forgery of a valuable security or a
document has taken place facilitating the
transactions;]
 (D) all suspicious transactions whether or not made in
cash and by way of— (i) deposits and credits,
withdrawals into or from any accounts in whatsoever
name they are referred to in any currency maintained
 by way of—
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 (a) cheques including third party cheques, pay orders,
demand drafts, cashiers cheques or any other
instrument of payment of money including electronic
receipts or credits and electronic payments or debits,
or
 (b) travellers cheques, or
 (c) transfer from one account within the same banking
company, financial institution and intermediary, as the
case may be, including from or to Nostro and Vostro
accounts, or
 (d) any other mode in whatsoever name it is referred
to;
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Other Laws applicable to Cooperative Banks
 The Negotiable Instrument Act 1881
 State Stamp Acts
 State Co-operative Societies Act
 Multistate Co-operative Societies Act 2002
 Income Tax Act 1961
 Employees Provident Fund Act 1952
 Gratuity Act
 Payment of Bonus Act 1956
 Indian Contract Act 1872
 The Foreign Exchange Management Act, 1999
 The Service Tax Act and Rules
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Thank You!
CA Sunil Nagaonkar, Kolhapur
M: 9823124333
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