In the principal Act, after Section42, the following

Section 42 as section shall be inserted, namely:- Section 42-A

fieedom to obtain loans fiom any Bank or financial institutions regulated by RBI and refinance from NABARD or any other refinancing agency directly or through any RBIregulated fmancial institutions

To be re-numbered And added in Section 43 as andnot necessary from the federal society to which is afliliated ". 1 0. In the Principal Act, in section 43, the existing section shall be renumbered as Sub-section (1) of the section and after Sub-section (1) as so renumbered, clause(2) the following Sub-section shall be added, namely:- "(2) 25% State equity shall be applicable to the State Cooperative Bank (SCB) in the normal course, the State Government may be further allowed to contribute equity above the limit only in case of equity infusion as required in the SCB in accordane with Section 11 (1) of the BRAct 1949

1. (AACS) provide that there shall be only one Government representative on the Board of SCB duly nominated by the authority concerned. The

CEO of the SCB shall not be treated as the

representative on the Board. However, in case of the Board of PACS/MPCS/LAMPS/FSS, there shall be no Government nominee. The State or a Cooperative may reduce or enhance the State equity at any level if so advice." To be added in 11. In the Pricipal Act, in Section 5 1, after Sub Section Section 5 1 as (2), the following Sub- Section shall be added, namely:- Sub-section 51 (3) (4) " (3)- A Short Term Cooperative Credit Structure Society shall have the freedom to invest or deposit

its funds in the Bank or financial institution

regualated by the Reserve Bank of India and not necessarily in the federal society to which it is affiliated." To be inserted in Section 53 as Section 52-A