Contribution to Reserve Fund for Credit and Thrift Societies

A co-operative credit and thrift society of salary or wage-earners may be permitted in writing by the Registrar to contribute to the Reserve Fund not less than ten percent of its net profits, if the society- (i) is prepared to reduce its rate of interest on lending to the extent acceptable or suggested by the Registrar, and (ii) has obtained agreements from the borrowing members for recovery of its dues from their salary as provided under Section 40.