Investment of funds

A society may invest or deposit its fund,—

1. (a) in a Central Bank or the State Co-operative Bank;
2. (b) in the State Bank of India or in any nationalised bank;
3. (c) in the Postal Savings Bank;
4. (d) in any of the securities specified in section 20 of the Indian Trusts Act, 1882;
5. (e) in shares, or security bonds, or debentures, issued by any other society with limited liability;
6. (f) in any land or building;
7. (g) in Employee’s Provident Fund; or
8. (h) in such other manner as may be determined by Administration, with the prior approval of the Administrator subject to such terms and conditions as may be prescribed in this behalf: Provided that in case of a co-operative society carrying on the business of banking, the investments therein shall be in accordance with the guidelines issued by the Reserve Bank in this regard from time to time. Explanation.––For the purposes of this section, the expression “nationalised bank” means a corresponding new bank constituted under sub-section (1) of section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.