Addition of a new Chapter VI-D after Chapter VI-C of the Act 6 of 1935

In the Bihar co-operative Societies Act, 1935 after chapter VI-C, the following chapter VI — D shall be incorporated, namely; “CHAPTER VI —D Special Provisions applicable to societies in Short Term Co-operative Credit Structure. 44AT. Overriding effect of Chapter VI-D.— Notwithstanding anything contrary or inconsistent contained in any other chapter of this Act or the Bihar Self Supporting Co-operative Societies Act 1996 or rules framed there under or bye-laws of any registered society or orders issued there under, the provisions of this chapter shall have overriding effect. 44AU. Ensuring membership of Primary Agricultural credit society to depositors and borrowers.—Every person who is a borrower or depositor of a Primary Agricultural Credit Society or wants to become a borrower or depositor of such society shall be compulsorily made a member or an associate member of such society in terms of sub-section (6) of section-44AQ with full voting rights. 44AV. Autonomy in all financial and internal administrative matters. — A co-operative society under Short Term Co-operative Credit Structure shall, have autonomy in all financial and internal administrative matters including the following areas: — (a) Interest rates on deposits and loans in conformity with Reserve Bank guidelines (b) Borrowing and investments, (c) Loan policies and individual loan decisions, (d) Personnel policy, staffing, recruitment, posting and compensation to staff, and (e) Appointment of auditors and compensation for the audit and internal control system. 44AW. Limit on State Government’s subscription.— The State Government’s subscription in the share capital of any Co-operative Society under the Short Term Co-operative Credit Structure shall not exceed 25% of the total paid up share capital of such society, Provided that the State Government or such society shall have option to further reduce the subscription of the State Government and that the society shall not be prevented from doing so by the State Government. 44AX Restriction on number of Government Nominees.—(1) There shall be only one Government nominee in the Managing Committee of the State Co-operative Bank and Central Co-operative Banks. (2)There shall be no Government nominee in the Managing Committee of a Primary Agricultural Credit Society.”