Restriction on borrowings

A registered society may receive deposits and may borrow from its members and from persons who are not members to such extent and on such conditions as may be provided in the Act and Bye-Laws. Provided that no Co-operative Society shall, by accepting deposits or loans or in any other way, incur liabilities exceeding 25 times the sum of the paid up share capital and the accumulated reserved fund during any financial year. Provided further that while calculating the total sum of subscribed share capital and accumulated reserved fund, the accumulated losses shall be deducted.