Co-operative which maybe registered / Co-operative Bankto be eligible Co-operative Bank

(1) A society whose objective is to promote the economic interest or general welfare of its members or of the public in accordance with the Co-operative Principles laid down in Schedule A or a society established with the objective of facilitating the operations of any society may be registered underthIs Act with limited liability. (2) No society shall be registered if in the opinion of the Registrar, its declared objects are unlikely to be achieved or if it is likely to be economically unsound or if it may have an adverse effect upon any registered society or the Co-operative Movement as a whole. A Co-operative Society registered as a Co-operative Bank underthis Act shall be eligible to be a Co-operative Bank within the meaning of clause (g) of Section 2 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and shall be bound by the following- a) If so required by the Reserve bank in the public interest or for preventing the affairs of the Co-operative Bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of the bank, an order shall be made for the supersession of the committee of management or other managing body (by whatever name called) of the Co-operative Bank and the appointment of an administrator therefore for such period or periods not exceeding five years in the aggregate as may from time to time specified by the Reserve Bank. b) An order for the winding up of the Co-operative Bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the committee of management or other managing body (by whatever name called) of the Co-operative Bank and the appointment of an administrator therefore made with the previous sanction in writing or on the requisition of the Reserve Bank shall not be liable to be called in question in any manner. The Liquidator or the insured Co-operative Bank or the transferee Co-operative Bank, as the case may be, shall be undef an obligation to repay the corporation in the circumstances to the extend and in the manner referred to in Section 21 of the Depositor Insurance and Credit Guarantee Corporation Act, 1961.