Central Bank.

Restrictions on giving loans

1. (1) No society shall give a loan to any person other than a member, or

on the security of its own shares, or on the security of any person who is not a

member:

Provided that subject to such rules as may be made in this behalf , a society

may give loans to another society.

1. (2) Notwithstanding anything contained in sub-section (1) , a societ y may

give a loan to a depositor on the security of his deposit.

1. (3) Notwithstanding anything contained in this Regulation, no person or

group of persons other than a member or members shall be eligible to borrow

from or make deposit in a Primary Agricultural Credit Co-operative Society.

1. (4) If in the opinion of the Administrator, it is necessary or expedient so to

do in the interest of the society or societies concerned, the Administrator may,

by general or special order in writing, prohibit, restrict or regulate the lending of money by any society or class of societies on the security of any property:

Provided that the Registrar may, for ensuring safety of the funds of the

society or societies concerned, for proper utilisation of such funds in furtherance of their objects and for keeping them within the loan making limits laid down in

societies to its members or other societies.