Advances by Uttaranchal Co-operative Bank Ltd. and District Central Co-operative Bank

(1) Uttaranchal Co-operative Bank Ltd. and District Central Co-operative Bank may advance loans to the individual nominal members for other than agricultural purposes, subject to such terms and conditions as Uttaranchal Co-operative Bank Ltd. may impose as per instructions issued by the Reserve Bank of India from time to time: Provided that such terms and conditions shall be deemed to be valid only after receipt of prior approval of the Registrar of the State. Note-Registrar of the State means Registrar appointed by the State Government under sub-section (1) of Section 3 of the Act. (2) District/Central Co-operative Bank may advance short-term loan to non-defaulting members of a defunct or dormant Co-operative Society. Explanation- (i) The term dormant used in this sub-rule means the society which fails to start its functions within six months of its registration. (ii) The term ‘defunct’ used in this sub-rule means the Society- (a) Where the number of ordinary members has been reduced to less than such minimum as provided in Section 6 for the registration of such society; or (b) Where the Registrar is of the opinion that the society ought to be wound up under Section 72; or (c) Where the Co-operative Society is no longer fulfilling its objects or complying with the requirements of Clause (d) of Sub-section (1) of Section 7.