Inthe PrincipalAct in Section 17 (1) shall be

inserted as Sub-clause (a). namely:- \ ,. "17 (1) (a): To provide full voting membership right to all de~ositors/borrowers in Coo~eratives other L than Cooperative Banks, provide that he or she is a share holder of the Registered Cooperative Society". To be inserted in "34-A (1):- The Committee of every Section 32 (I) (a-i) society in a Cooperative Credit Structure shall have

freedom to decide its financial and internal

administrative matters, especially in the following areas".

1. (i) Interest rates ondepositsand loans inconformity with RBI guidelines,
2. (ii) Borrowings and investments,
3. (ii) Loans policies and individuals loans decisions,
4. (iv) Personal policy, staffing, recruitment, posting and compensation for the audit.

1. (2) No person shall be elected, nominated or co- opted or allowed to continue as a member of the Board of Short Term Cooperative Credit Society, if he, :-
   • (i) Is a person who represents a society other than PACSMPCS on the Board of the SCB, if such societyto whom herepresents has committed a default towards the payments to such Bank for a period exceeding 90 (Ninety) days.
   • (ii) Is a person who committed a default towards the payments to a PACSMPCS or represents a society on the Board of the SCB, if such society to whom he

represents has committed a default towards the

payments suchbank for a period exceeding one year unless the default is cleared. To be inserted in 7. Inthe principal Act, in Section 36, after Sub-

Section 36 as Section36-A (I) (2)

1. (3) (4) Section 5, the following section shall be inserted, namely- 36 (A) (1): The Supercession of the Board of the SCB SCB by theRCS under any other Sectionofthe State

Cooperative Society Bill, shall be done only

in consultation ofthe RBI.

1. (2) The Supercession of the Board of the PACS/ MPCS shall be done by the RCS only under the following conditions; 6) Ifa society incurs losses for three consecutive years, or 6) If serious financial irregularities or huds have been identified, or (iii Ifthere are judicial directives to this effects or there is perpetual lack of quorum.
2. (3) The RCS shall conduct elections to a Short Term Cooperative Credit Structure Society within two month from the date of supercession.
3. (4) The member ofthe Board which has been removed under Sub- Section 2 (i),
   • (ii) and 2 (iii) shall not be eligible to contest the election again for a period of three years from the date of supercession. To be inserted in