Investment of funds

A multi-State co-operative society may invest or deposit its funds— (a) in a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or (b) in any of the securities issued by the Central Government, State Government, Government Corporations, Government Companies, Authorities, Public Sector Undertakings or any other securities ensured by Government guarantees; (c) in the shares or securities of any other multi-State co-operative society or any co-operative society; or (d) in the shares, securities or assets of a subsidiary institution or any other institution; in the same line of business as the multi-State co-operative society or (e) with any other scheduled or nationalised bank. Explanation.––For the purposes of this clause, the expression,— (i) “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); and (ii) “nationalised bank” means a corresponding new bank constituted under sub-section (1) of section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or (f) in such other manner as may be determined by the Central Government.