Restrictions on loans

(1) A co-operative society shall advance loans to its members, it will also advance loans to its employees under a scheme approved by the Registrar: Provided that with the general or special sanction of the Registrar a co-operative society may make loans to another co-operative society. (2) Notwithstanding anything contained in sub-section (1) a co-operative society may make a loan to a depositor on the security of this deposit N.S.C.K.V.P. Gold & Silver ornaments & other immovable property on mortgage and on other modes of security as permitted by Nabard/ RBI.