Restrictions on loans.

(1) A co-operative society shall not make a loan to any person other than a member:

Provided that with the general or special sanction of the Registrar, a co-operative society may make a loan to another co-operative society :

Provided further that the co-operative bank shall make loans and advances as per directions of the Reserve Bank from time to time.

(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security.