Investment of funds

Investment of funds. It is proposed to amend Section 58 to lay down that a Co-operative Bank may invest its funds in Scheduled bank or financial institution regulated by the Reserve Bank as per the directives of the Reserve Bank of India. A co-operative society may invest or deposit its funds,— (a) in a Government Savings Bank; or (b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (Central Act II of 1882); or (c) in the shares or securities of any other co-operative society; or (d) with any Co-operative Bank; or (e) with any scheduled bank regulated by the Reserve Bank of its choice and approved by the general body of that society till the date of the next annual general body meeting. Provided that, if a Co-operative Society invest or deposit outside the area of operation of the such society prior permission shall be obtained from the Registrar. Provided further that in the case of a Co-operative Bank, such investment shall be made in accordance with the instructions and directives issued by the Reserve Bank from time to time.