Investment of Funds

Investment of Funds. Such of its funds as are not immediately required for use by a co-operative, shall be invested or deposited outside its business, namely:-

With the Karnataka State Co-operative Apex Bank Ltd. or District Central Co-operative Bank Ltd or Urban Co-operative Bank; and

With any scheduled bank regulated by the Reserve Bank of India with the prior permission of the Registrar.

Provided further that nothing contained in the first provision shall apply to a Co-operative Bank

Provided also that no Souharda Co-operative societies undertaking credit activities shall not utilize the mobilized deposit for non-credit activities other than lending and investments. In the Principal Act, in section 48, after sub- section (6), the following sub-section shall be inserted, namely:- "(6-A) After issuing the Order for cancelling the order issued by the registrar Co-operative society for winding up of the society, the Federal Co-operative shall appoint a special officer to conduct the election of the Co-operative Society."