Investment of funds.

A society may by a resolution of majority of committee with due care and diligence, invest or deposit its funds which are not immediately required for the business of the society- (a) in the Postal Savings Banks; (b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; (c) [xxx] (d) with any Nationalised Bank or Scheduled Bank or the concerned District Co-operative Central Bank; (e) [xxx] Provided that every primary agricultural credit society and every Co-operative Central Bank shall invest or deposit in each co-operative year towards the bad debts reserve of the said society or bank, a sum equal to one-fourth per centum of the amount granted by it as short term loans or medium term loans to its members during the co-operative year from out of the amounts borrowed by it from other co-operative financial institutions for granting such loans; so however that no such investment or deposit shall be necessary when the total amount so invested or deposited towards bad debts reserve becomes equal to the total amount of bad debts of the society as estimated by the auditor appointed under section 50. Explanation.- For purposes of this section, sub-section (3) of section 47 and section 71, the expression “primary agricultural credit society” means a society referred to in clause (i) of Explanation to section 36.