Co-operatives which may be registered

Co-operatives which may be registered. (1) No co-operative shall be registered under this Act, unless,- (a) its main objects are to serve the interests of the members in the area of operation. (b) its bye-laws provides for economic and social betterment of its members through self help and mutual aid in accordance with the co-operative principles. (2) Subject to the provisions of this Act where,- (a) not less than ten individuals belonging to different families intend to form a Co-operative; or (b) a Co-operative society intends to convert itself into a Co-operative under this Act by passing a resolution in this behalf; or (c) twenty or more cooperatives registered under this Act intend to form into a union Co-operative by passing a resolution in this behalf; they may be to avoid unhealthy competition among different types of Co-operatives, Registrar may issue direction and circulars from time to time, subject to these circular and direction. registered as Co-operative under this Act. Provided that no Co-operative shall be registered if it is likely to be economically unsound or the registration of which may have an adverse impact on the development of the Co-operative movement. Provided further that no Co-operative shall be registered under this Act as a Housing Co-operative and no Housing Co-operative Society shall be converted into a Housing Co-operative. In section 17 of the principal Act, the words “and other than deposits from any other financial institutions and organisations.” shall be inserted, at the end. In the Principal Act, after section 17A, the following shall be inserted, namely:- “17-B. Maintenance of State Statutory Liquidity Reserve.- Every souharda cooperative shall mandatorily maintain 20% of the total deposits held by it at the end of each co-operative year maintained as State Statutory Liquidity reserve as per section 18, except Souharda Cooperative Banks.”