Restrictions on borrowings

56[ (1)] A co-operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws. 57[ (2) Notwithstanding anything contained in this Act or any other law for the time being in force, a short term co-operative credit structure society may -

1. (i) borrow from any bank or financial institution regulated by the Reserve Bank of India and refinance from the National Bank or any other refinancing agency directly or through any financial institution regulated by the Reserve Bank of India and not necessarily from only the federal tier to which it is affiliated; and
2. (ii) decide interest rates on deposits and loans in conformity with the guidelines issued in this regard by the Reserve Bank of India.]