MODEL BYE-LAWS OF

A PRIMARY (URBAN) CO-OPERATIVE BANK

----------------------------------------------------------------------------------------------------------------
1. NAME :
The Name of the Bank shall be The Sahe!a" De#h$%&h C"-"'. Ba(& L)*+
a society registered under MCS Act 1960 ide registration no!B"M#BN$#1%&#19'%
dated 0%#10#19'% and has been granted license by (!B!)! to carry on banking business
ide license no! *B+#M,#-'9 . dated 1&#10#19-'!
,. RE-ISTERED OFFICE :
i/ The .rinci0al 0lace and the (egistered "ffice of the Bank shall be situated at 1012
Trade Corner2 Sakinaka 3unction2 Saki 4ihar (oad2 Sakinaka2 Andheri 56/2 Mumbai7
&00 0'%!
ii/ Any change in the address shall be 0ublished in local ne8s0a0er and shall be made
by an amendment to its Bye7la8s after follo8ing the 0rocedures laid do8n in the
MCS Act2 1960 8ith 0rior a00roal from (!B!)!
.. AREA OF OPERATION :
The area of o0eration of the Bank shall be confined to the entire state of Maharashtra!
9or any reision in this regard2 the 0rior a00roal in 8riting of the (esere Bank of
)ndia and also the (egistering authority shall be necessary!
/. DEFINITIONS :
0. :Act; means the Maharashtra Co7o0eratie Societies 5MCS/ Act2 1960 as
amended from time to time!
00. :(ules; means the Maharashtra Co7o0eratie Societies 5MCS/ (ules2 1961
made under the Maharashtra Co7o0eratie Societies 5MCS/ Act2 1960 and as
amended from time to time!
000. :(egistrar; means the (egistrar of Co7o0eratie Societies a00ointed under
the 0roisions of the Maharashtra Co7o0eratie Societies 5MCS/ Act2 1960!
01. :Bye7la8s; means the Bye7la8s of the Bank for the time being in force 8hich
hae been duly registered or deemed to hae been registered under the Act in
force and includes amendments thereto 8hich hae been duly registered or
deemed to hae been registered under the Act!
1
1. :<eneral Body; means all the "rdinary members 5Actie members and Non
actie members/!
10. :Board; means the Board of +irectors of the Bank!
100. :<eneral Meeting; means meeting of the <eneral Body of the Bank and
includes the S0ecial <eneral Meeting!
1000. =Chief 6>ecutie "fficer? means the highest e>ecutie authority in the bank
as may be described by any other name such as <eneral Manager2 Managing
+irector etc and 8ho shall be e>7officio functional director of the board!
02. =.erson? means an adult indiidual2 com0etent to contract under Section
11 of the )ndian Contract Act2 1-'% 5 9 of 1-'%/2 0ro0rietary concern in
0ro0rietor?s indiidual ca0acity2 0artnershi0 firm duly registered under the
)ndian .artnershi0 Act2 191%2 ,indu undiided family formed under
,indu @a82 com0any or any other body cor0orate constituted under the
la8 for the time being in force2 society registered under the Societies
(egistration Act of 1-602 and State <oernment and .ublic Trust
registered under any la8 for the time being in force for registration of such
trusts subAect to amendment in the Act!
2. ="fficer bearer? means a Chairman2 4ice7Chairman2 Chief 6>ecutie "fficer2
@iBuidator2 an Administrator a00ointed under Act and includes any other
0erson em0o8ered under Maharashtra Co7o0eratie Societies 5MCS/ Act2
1960 or the (ules or the Bye7la8s to gie direction in regard to business of
the Bank!
20. :"rdinary Member; means a 0erson Aoining in the a00lication for the
registration of a Co7o0eratie Bank and includes a 0erson admitted to
ordinary membershi0 after such registration in accordance 8ith the 0roisions
of the Act2 the (ules and the Bye7la8s!
200. :Nominal Member; means a 0erson 8ho has been admitted as a nominal
member under the Bye7la8s of the Bank!
2000. :Actie Member; means one 8ho 0artici0ates in the affairs of the bank and
utiliCes the minimum leel of serices or 0roducts of that bank as may be
0rescribed in the Bye7 la8s of the Bank!
201. :Associate Member; means a member2 8ho holds a share in the Bank Aointly
8ith the other2 but 8hose name does not stand first in the Share Certificate of
the Bank!
21. :Co7o0eratie Society; means a Co7o0eratie society registered or deemed to
be registered under the MCS Act!
%
210. :9ederal Co7o0eratie; means a federation # association of Co7o0eratie
societies registered under the Act and 8hose membershi0 is aailable only
to a Co7o0eratie society 8hich undertakes Banking business!

2100. :Co7o0eratie Bank? means a co7o0eratie society 8hich undertakes
Banking business and registered # deemed to be registered under
Maharashtra Coo0eratie Societies Act and # or licensed or deemed to be
licensed under the Banking (egulation Act2 19&9 5AACS/!
21000. :(esere Bank;2 means the (esere Bank of )ndia constituted under the
(B) Act2 191& 5% of 191&/!
202. :+e0osit )nsurance Cor0oration; means the +e0osit )nsurance and Credit
<uarantee Cor0oration established under Sec! 1 of the +e0osit )nsurance
Cor0oration Act2 1961!
22. :+efaulter; means a member 8ho commits a default u#s 3.CA of
Maharashtra Coo0eratie Societies Act 1960!
220. :Dillful +efaulter; means a member 8ho commits default as 0er the
directies and guidelines issued by the (esere Bank of )ndia from time
to time!
2200. :Co7o0eratie Eear; means the 0eriod from 1st of A0ril to 11st March!
22000. :Area of "0eration; means the area from 8hich the 0ersons can be
admitted as members of the Bank!
2201. :Co7o0eratie .rinci0les; means the Co7o0eratie 0rinci0les!
221. :State <oernment; means the =<oernment of Maharashtra?!
2210. :6m0loyee; means an indiidual 8ho is engaged in the em0loyment of
the Bank under contractual relationshi0 8ith the Bank as an em0loyer!
22100. :Notification; means a notification 0ublished in the official gaCette of the
<oernment!
221000. :BAN$; means The Sahe!a" De#h$%&h C"-"'. Ba(& L)*.
2202. B! (! Act means Banking (egulation Act 19&92 as a00licable to Co7
o0eratie Societies!
1
222. 9unctional directors means and includes a Managing +irector or a Chief
6>ecutie "fficer by 8hateer designation called or any of the head of
the +e0artment of the bank2 nominated by the Board of +irectors!
4. OB5ECTS :
The .rinci0al obAect of the Bank is to ensure the security of the de0ositors of the bank
and 0romote the interests of all its members to attain their social and economic
betterment through self7hel0 and mutual aid in accordance 8ith the co7o0eratie
0rinci0les2 to carry out follo8ing functions!
i! To encourage thrift2 self hel0 and mutual co7o0eration amongst the
members!
ii! To acce0t de0osits of money from the 0ublic2 re0ayable on demand or
other8ise and 8ithdra8 able by cheBue2 draft2 order or other8ise for the
0ur0ose of lending or inestment!
iii! To borro8 or raise money!
i! To lend or to adance fund based or non fund based facility either 8ith or
8ithout security to members and others as 0ermitted by the
(egistrar#(esere Bank of )ndia!
! To dra8 make2 acce0t2 co acce0t2 discount2 buy2 sell2 collect and deal in
bills of e>change2 hundies2 0romissory notes2 cou0ons2 drafts2 bills of
lading2 rail8ay recei0ts2 8arrants2 certificates2 scri0s and other
instruments and other securities 8hether transferable or negotiable or not!
i! To grant and to issue letter of credit2 traelers cheBues and circular notes!
ii! To buy and sell <old2 Siler2 Bullion and other s0ecies and foreign
e>change including foreign Bank notes and to undertake foreign
e>change business 8ith the 0ermission of (esere Bank of )ndia!
iii! To acBuire2 to hold2 to issue on commission2 to under8rite and to deal in
stocks2 funds2 shares2 debentures2 debenture stock2 bonds2 obligations2
securities and inestment of all kinds!
i>! To 0urchase and to sell Bonds2 Shares2 +ebentures2 Scri0ts or other forms
of securities on behalf of constituents!
>! To receie all kinds of bonds2 scri0ts2 aluables on de0osit or for safe
custody or other8ise!
>i! To 0roide safe de0osit aults and ancillary serices!
&
>ii! To collect and transmit money and securities!
>iii! To negotiate loans and adances!
>i! To carry on and to transact eery kind of guarantee and indemnity
business on behalf of constituents!
>! To effect2 to insure2 to guarantee2 to under8rite2 to 0artici0ate in
managing and carrying out any issue2 8hether 0ublic or 0riate2 of shares2
stocks2 bonds2 debentures2 debenture stocks or other loans of any State2
Munici0al Cor0oration2 com0any2 cor0oration or association and to lend
money for the 0ur0ose of any such issue2
>i! To acBuire2 to sell2 to construct2 to maintain and to alter any Building of
the Bank or 8ork necessary or conenient for the 0ur0ose of the Bank
and also to acBuire2 hold and deal in 0ro0erty or title2 right2 interest2 in
such 0ro0erty 8hich may form security # 0art of security or connected
8ith security for any loans and adances!
>ii! To manage2 to sell and to realiCe any 0ro0erty this may come into
0ossession of the Bank in full satisfaction or 0art satisfaction of any of its
claims!
>iii! To 0roide for Coo0eratie F Banking education F training to its
member!
>i>! To o0en branches2 e>tension counters2 0ay offices2 ATM centers2 any
other office 8ith 0ermission of the (esere Bank of )ndia 8hereer
necessary 8ithin the area of o0eration of the Bank so as to 0roide
Banking and other serices to the 0ublic!
>>! To acBuire2 to manage and to undertake the 8hole or 0art of the business
of any other co7o0eratie society 8ith the 0rior 0ermission of (egistrar
and (esere Bank of )ndia!
>>i! To establish2 to su00ort or to aid in establishment and su00ort of
association2 institution2 funds2 trusts of members2 em0loyees #e>7
em0loyees of the Bank or their de0endents or connection of such 0ersons
and to grant 0ension and allo8ances 0ayment to8ards insurance2
subscribing to or guaranteeing money for charitable or beneolent obAect
or e>hibition or for any 0ublic general or useful obAects and to undertake
and e>ecute trusts2 undertake administration or estates as 6>ecutor2
Trustee or other8ise!
>>ii! To 0re0are and to finance schemes for the betterment of the financial
condition of the members!
G
>>iii! To 0roide financial and technical assistance to Small Scale and Cottage
)ndustries and to hel0 self7em0loyed 0ersons for setting u0 their o8n
business!
>>i! To enter into 0artici0ation2 consortium arrangement # arrangements 8ith
any other Bank or Banks or financial institutions 8ith the obAect of
making loans and adances 8ith the 0ermission of (esere Bank of )ndia
8hereer necessary!
>>! To do any other form of business as s0ecified in clause 51/ of section 6 of
the Banking (egulation Act2 19&9 5 as a00licable to the Co7o0eratie
Societies/!
>>i! To act as agents for collection of monies of arious <oernment2 Buasi
<oernment and Statutory Bodies!
>>ii! To grant loans to Co7o0eratie ,ousing Societies for tem0orary 0eriod
0ending reimbursement from Maharashtra Co7o0eratie ,ousing 9inance
Society @td!2 @)C2 <oernment2 Semi7<oernment institutions or other
financing agencies 8ith the 0rior 0ermission of the (egistering Authority
and # or to grant loans to such societies on 0roAect basis as may be
0ermitted by the (esere Bank of )ndia # the (egistrar as a00licable!
>>iii! To undertake any other form of business 8hich the State <oernment may
s0ecify as a form of business in 8hich it is la8ful for a co7o0eratie
Banking institution to engage!
>>i>! To 0roide all financial2 technical2 legal data based serices2 com0uter
based and allied serices to members2 de0ositors2 customers2 0ublic
institutions2 Banks and associate concerns!
>>>! To undertake insurance business as cor0orate agents # on referral basis!
>>>i! To 0romote one or more subsidiary organiCation 8hich may be registered
under any la8 for the time being in force for the furtherance of its stated
obAects 8ith 0ermission of the (esere Bank of )ndia!
>>>ii! To engage in Credit # +ebit cards business 8ith the 0ermission of (esere
Bank of )ndia!
>>>iii! To do Merchant Banking and to act as a +e0ositary .artici0ant for +?mat
serices2 8ith the 0ermission of (esere Bank of )ndia!
>>>i! To merge2 takeoer2 acBuire Banks2 co7o0eratie Banks 8ith similar
obAects 8ith the 0ermission of (esere Bank of )ndia and the (egistrar!
>>>! To do all such other things as are incidental and conducie to the
0romotion or adancement of obAects and the business of the Bank!
6
>>>i! To do any other business as 0ermitted by (esere Bank of )ndia!
6. FUNDS :
a/ 9unds may be raised by the follo8ing meansH7
i! Share Ca0ital of any ty0e!
ii! 6ntrance 9ees!
iii! Subscri0tions!
i! +e0osits!
! @oans!
i! +onations2 <rants7in7aid2 Subsidies and Contributions!
ii! .rofit!
iii! 6>ternal Commercial Borro8ings 56CB/!
i>! 9loating Secured # *nsecured Bonds!
>! (efinance # @etter of Credit!
>i! )ssue of non I conertible debentures or other instruments as 0ermitted by
the (esere Bank of )ndia!
>ii! Any other means as may be 0ermitted by (esere Bank of )ndia2 and # or
the (egistrar from time to time!
b/ The funds of the Bank shall be utiliCed to achiee the obAects of the Bank!
3. MA7IMUM BORROWIN- LIMIT :
The ma>imum borro8ing limit of the Bank during any financial year shall be
regulated in accordance 8ith the 0roision of the Act F (ules or as 0er the
0ermission from (egistrar!
8. S9ARES :
The authoriCed share ca0ital of the Bank is (s! %02002002000#7 5(s! T8enty Crores
"nly/ diided into &2002000 shares of (s! G00#7 each!
:. MEMBERS9IP:
The Bank shall hae follo8ing categories of members H
a/ "rdinary Members!
i/ Actie Member
ii/ Non7 actie Member
b/ Nominal Members!
c/ Associate Members!
1;. ORDINARY MEMBER:
i/ Any 0erson 8ho resides or is engaged in any occu0ation2 0rofession or business
8ithin the area of o0eration of the Bank and he shall hae any ty0e of account
'
8ith a minimum credit balance of (s!G00#7 and 8ho genuinely needs the serices
0roided by the Bank and the Bank is ca0able and in a 0osition to fulfill his needs
and 8hose business2 occu0ation does not conflict 8ith that of the Bank may be
admitted as an "rdinary member!
ii/ No 0erson shall be admitted as an ordinary member of the Bank e>ce0t the
follo8ing2 namely H
a/ An indiidual2 com0etent to contract under section 11 of the )ndian Contract
Act2 1-'%2
b/ .ro0rietary concern in 0ro0rietor?s indiidual ca0acity2
c/ .artnershi0 firm duly registered under the )ndian .artnershi0 Act2 191%2
d/ ,indu *ndiided 9amily!
e/ Com0any or any other body cor0orate constituted under the la8 for the time
being in force!
f/ @ocal authority!
g/ .ublic Trust registered under any la8 for the time being in force for
registration of such trust!
h/ Such class or classes of 0ersons or association of 0ersons as may be 0ermitted
by the (egistrar haing regard to the nature and actiities of 0ersons or
association of 0ersons or a society!
iii/ State # Central <oernment!
i/ No em0loyee of the Bank shall be eligible to become ordinary member of the
Bank! 6>isting em0loyee member shall cease to be a member 8ith immediate
effect!
/ No coo0eratie society shall be eligible to become member of the bank!
11. CONDITIONS FOR AN ORDINARY MEMBERS9IP :
i/ An a00licant 8ill be enrolled as an ordinary member u0on fulfilling the
follo8ing conditions if heH
a/ ,as a00lied in 8riting in the 0rescribed format!
b/ ,as 0aid admission fee of (s!100#7 or as may be sti0ulated by the Board of
+irectors from time to time and 0aid at least alue of one share of the Bank!
c/ ,as fulfilled all other conditions laid do8n in the Act2 the (ules and the Bye7
la8s!
-
ii/ The Board of +irectors of the Bank has a00roed a00lication to admit as a
member!
iii/ No 0erson shall be eligible for admission as a member of the Bank if heH
a/ ,as not attained the age of 18 years2
b/ ,as been adAudged by a com0etent court to be an insolent or an
undischarged insolent2
c/ ,as been sentenced for any offence2 other than offence of a 0olitical character
or an offence not inoling moral tur0itude and dishonesty and a 0eriod of
G years has not ela0sed from the date of e>0iry of the sentence!
1,. RI-9TS AND DUTIES OF MEMBER :
51/ A member shall be entitled to e>ercise such rights as 0roided in the Act2 (ules
and bye7la8s!
.roided that no member shall e>ercise the rights of a member of the bank2 until
he has made such 0ayment to the society in res0ect of membershi02 or acBuired
such interest in the society as may be 0rescribed by the rules and the bye7la8s of
the society2 from time to time! .roided further that2 in case of increase in
minimum contribution of member in share ca0ital to e>ercise right of
membershi02 the society shall gie a due notice of demand to the members and
gie reasonable 0eriod to com0ly 8ith!
5%/ )t is a duty of eery member of the bank7
5a/ to attend at least one general body meeting in the 0receding fie consecutie
years2
5b/ to utiliCe minimum leel of serices at least once in the 0receding fie
consecutie years as 0rescribed in the bye la8s!
.roided that2 a member 8ho does not attend at least one meeting of the
general body as aboe and does not utiliCe minimum leel of serices as
0rescribed in the bye7la8s shall be classified as non7actie member! The bank
shall communicate such classification as non7actie member to the concerned
member 8ithin 10 days from the date of close of 0receding financial year!
.roided further that2 non7actie member 8ho does not attend one meeting of
the general body and does not utiliCe minimum leel of serices as 0rescribed
in the byela8s2 in ne>t fie years from the date of classification as non7actie
member! Such non7actie member shall be liable for e>0ulsion under Section
1G of the Act!
.roided also that a member classified as non7 actie member shall not be
entitled to any concessional benefit from the bank till the date of his
re7classification as actie member by the bank!
9
.roided also that2 if a Buestion of a member being actie or non7actie arises
an a00eal shall lie 8ith the (egistrar 8ithin 60 days from the date of
communication of classification as non7actie member!
.roided also that2 so far as the elections 8hich 8ill be conducted
immediately after 0romulgation of the "rdinance no! )) dated 1&#0%#%011
regarding amendment of Act2 all the e>isting members of the bank shall be
eligible for oting2 unless other8ise2 they are not declared as ineligible to
ote!
(1.) APPLICATION OF MEMBERS9IP AND IT<S DISPOSAL :
a/ The a00lication for ordinary membershi0 of the Bank shall be submitted by the
a00licant to the Chief 6>ecutie "fficer of the Bank in the 0rescribed form2
accom0anied by admission fee of (s!100#7! An a00licant shall also subscribe to
at least t8o shares of (s!G00#7 each fully 0aid2 at the time of submitting the
a00lication!
b/ The a00lication for membershi0 of the Bank found com0lete in all res0ects shall
be dis0osed of 8ithin a 0eriod of 90 days from the date of recei0t of the
a00lication by the Bank and the same shall be communicated to the a00licant
8ithin 60 days of the decision!
(1/) ACTIVE MEMBER :
:Actie Member; means a 0erson 8ho has been admitted as an ="rdinary Member?
under the Bye7la8s of the Bank and 8ho com0lies follo8ing conditions!
i/ To attend at least one general body meeting in the 0receding fie consecutie
years!
ii/ To utiliCe minimum leel of serices as 0roided in byla8 no 1G as follo8ing
(14) MODEL LEVEL OF SERVICES FOR BECOMIN- ACTIVE MEMBER :
The minimum leel of serices to become actie member are 0rescribed bello8
*e'e(*0(= %'"( #0>e "? )he Ba(&
i/ Sha!e Ca'0)a@ h"@*0(= R#. 1A4;;B-
a(*
ii/ De'"#0) R#. 8A;;;B- "! L"a( "? R#. 1A;;A;;;B-.
P!"10#" C I
.roided that a =+e0ositor? means an ordinary member2 8ho has been holding
aggregate de0osits 5in all ty0es of accounts/ not less than the amount 0rescribed
aboe for the continuous 0eriod of not less than one year in the bank in his name
or in the name of the firm # com0any # society # trust2 to 8hom he is re0resenting
as a 0ro0rietor # +irector # "ffice bearer#Trustee!
10
P!"10#" C II
.roided that a =Borro8er? means an ordinary member2 8ho is enAoying any ty0e
of sanctioned and aailed credit facility of the Bank for continuous t8o years
during the last fie years!
(16) RI-9TS OF ACTIVE MEMBER:
i/ (ight to ote in the general election of the Board of the bank! ,o8eer no member
shall be 0ermitted to ote by 0ro>yH
.roided that2 any institution2 com0any2 0artnershi0 firm2 a registered trust may
a00oint its re0resentatie to ote on its behalf in the general election to the Board of
the Bank!
ii/ An actie member can e>ercise all other rights of an ordinary member as mentioned
in this Bye7la8s!
(13) VOTIN- RI-9TS FOR -ENERAL ELECTION OF T9E BANK:
i/ "nly actie member shall hae one ote irres0ectie of the number of shares heldJ
ii/ )ndiidual actie member shall ote in 0erson2 8hile a firm or a com0any or any
other body cor0orate constituted under any la8 for the time being in force2 or
<oernment 8hich is a member2 may a00oint one of its 0artners2 directors or officers
to 0artici0ate in the election to e>ercise the right of oteJ
iii/ Actie member shall not be eligible to ote 8ho has become defaulter as 0roided in
6>0lanation to Clause 5i/ of sub Section 51/ of section '1 CA!
(18) 5OINT MEMBERS9IPS C RI-9TS D LIABILITIES:
i/ Shares may be 0urchased in the names of more than one 0erson Aointly!
ii/ "n death of a associate holder2 the suriing 0erson # 0ersons shall be recogniCed as
shareholder # Aoint shareholders!
iii/ The associate holder of any share shall be liable seerally as 8ell as Aointly for all
0ayments 8hich are to be made in res0ect of such share or shares!
i/ The 0erson 8hose name stands first 8ritten on the share certificate shall enAoy all the
rights of a member and shall be entitled to receie the notice of the <eneral Meeting
and the diidend as declared!
/ Dhere an actie member holds a share of the bank Aointly 8ith more than one 0erson2
the 0erson 8hose name stands first in the share certificate2 if 0resent2 shall hae the
right to ote! But in his absence the 0erson 8hose name stands second and in absence
of both2 the 0erson 8hose name stands ne>t and like8ise in the absence of 0receding
11
0ersons the 0erson 8hose name is ne>t on the share certificate2 8ho is 0resent and
8ho is not a minor2 shall hae right to ote!
(1:) NOMINAL MEMBER:
i/ Any 0erson 8ho is co70arsener or 8ho desires to stand surety for a borro8ing
member of the Bank or 8ho desires to borro8 occasionally as 0ermitted by (esere
Bank of )ndia may be enrolled as nominal member u0on his a00lication in the
0rescribed form and on 0ayment of nonrefundable entrance fee as s0ecified by the
Board of +irectors from time to time 50resently (s!100#7/ and u0on his agreeing to
the condition that he shall cease to be a nominal member 8hen all liabilities against
him either as a borro8er or as a surety are fully discharged 0roided that such 0erson
is one 8ho resides or is gainfully engaged in any occu0ation 8ithin the area of
o0eration of the Bank!
ii/ An em0loyee of the Bank may be admitted as a nominal member and he 8ill be
entitled to arious loan facilities and other schemes on merit sanctioned by the Board
from time to time e>clusiely for em0loyees!
iii/ Nominal member shall not be entitledH
a! To receie a share certificate2
b! To receie audited accounts and annual re0ort2
c! To attend to 0artici0ate and to ote in the <eneral Meeting and # or S0ecial
<eneral Meeting of the Bank2
d! To receie diidend and
e! To contest and ote in the election to the Board!
(,;) LIABILITY OF A MEMBER:
The liability of a member shall be limited to the ca0ital re0resented by the share or
shares of 8hich such member is the registered holder! The liability of a 0ast member
to the e>tent of shares as they e>isted at the time 8hen he ceased to be a member
shall continue for a 0eriod of t8o years from the date of cessation! The estate of the
deceased member shall remain liable to the e>tent of sums due to the bank for a
0eriod of t8o years!
(,1) IDENTIFICATION OF MEMBER (A''@0Ea0@0)F "? KYC N"!$# "? RBI )"
Me$e!#):
9or all transactions 8ith the bank2 identification of member is necessary! 9or
identification2 the indiidual member shall com0ly 8ith the $no8 Eour Customer
5$!E!C!/ guidelines issued by the (esere Bank of )ndia from time to time! The
e>isting members shall also com0ly 8ith such $!E!C! norms! )dentification of the
member of the =Bank? shall be done by an officer of the =Bank? or a com0etent
authority through the official )dentity Card 8hich 8ill be issued free of charge for the
first time by the =Bank?! Dheneer a member desires to e>ercise his right as a
1%
member of the =Bank? such as attending the <eneral Body Meeting and 4oting there
for2 collecting annual diidends and # or occasional gifts2 e>ecution of agreements as
borro8er or guarantor2 oting at an election of director#s of the =Bank? and for such
other 0ur0ose 8hich Bank may notify from time to time the member may be asked to
0roduce his )dentity Card!
9or the election 0ur0ose the oter shall 0roduce any 0hoto identification as 0rescribed
by the 6lection Commission of )ndia from time to time!
Dhen unable to 0roduce such )dentity Card on demand2 his membershi0 right
8hatsoeer may be refused by the =Bank? at that time!
A +u0licate )dentity Card may be obtained from the Bank? in case of loss or
mutilation of the original card! ,o8eer2 du0licate cards shall be issued at a nominal
cost2 as may be determined by the bank2 from time to time!
NoteH 9or this bye7la8 Com0etent Authority means any 0erson#s nominated by the
=Bank? for this 0ur0ose!
(,,) WIT9DRAWAL AND RESI-NATION OF A MEMBER :
i/ A member may 8ithdra8 or resign his membershi0 after one year and giing at least
one month notice in 8riting and 8ithdra8 his share ca0ital 8ith the a00roal of the
Board! The a00roal shall not be gien 8hile such a member is indebted to the Bank
either as a borro8er or surety! +uring any coo0eratie year2 the aggregate
8ithdra8als shall not e>ceed 10K of the total .aid7*0 Ca0ital as at 11st March of the
0receding year! The money refunded shall be as 0er the aluation of share or face
alue of the share 8hicheer is less as on last 0receding financial year!
ii/ A member 8ho 8ithdra8s his membershi0 shall not be allo8ed to become a member
again for a 0eriod of one year from the date of 8ithdra8al of membershi0!
(,.) E7PULSION OF A MEMBER:
i/ 6>0ulsion of a member from the Bank shall be in accordance 8ith the 0roisions of
the Act and the (ules2 by (esolution 0assed by a maAority of not less than three7
fourth of the members 0resent and oting at a general# s0ecial meeting of members
held for the 0ur0ose! Bank shall e>0el a member for the acts 8hich are detrimental to
the 0ro0er 8orking of the Bank!
ii/ "n a00roal from (egistrar for e>0ulsion the 0erson 8ill cease to be a member!
.roided that the member concerned shall not be e>0elled unless he has been gien a
reasonable o00ortunity of making re0resentation in the matter as 0er Act and (ules!
iii/ No member of the Bank2 8ho has been e>0elled2 shall be eligible for readmission as a
member of the Bank for a 0eriod of one year from the date of such e>0ulsion!
(,/) CESSATION OF MEMBERS9IP:
11
Membershi0 8ill ceaseH7
a/ "n death of an indiidual member or dissolution or liBuidation in case of a firm or a
com0any or other cor0orate bodyJ
b/ "n being adAudged as insolent or legally disBualified from continuing as a member J
c/ "n transfer of all the shares to another member J 5this 8ill be a00licable only if the
bank is haing 0ositie net78orth/
d/ "n resignation or 8ithdra8al of membershi0 haing been acce0ted J
e/ "n e>0ulsion from the Bank in accordance 8ith the 0roisions of the Act and the
(ules! Such e>0ulsion may inole forfeiture of sharesJ
f/ "n disBualification as 0er the 0roisions of the MCS Act2 (ules F bye7la8s!
g/ "n e>ercise of right of lien by the bank!
(,4) S9ARE CERTIFICATE:
i/ 6ery 0erson admitted as an ordinary member shall be entitled to receie a share
certificate gratis stating the number of shares and their distinctie numbers! The share
certificate shall be signed by the Chairman or any +irector duly authoriCed and the
Chief 6>ecutie! The share certificate shall bear the Bank?s seal!
ii/ )f any certificate be 8orn out2 defaced2 destroyed or lost2 a ne8 share certificate#s
may be issued in lieu thereof on 0ayment of fee 0er share certificate2 as 0rescribed by
the Board! )t shall ho8eer be necessary to 0roduce eidence to the satisfaction of the
Board that the share certificate?s 8ere 8orn out2 defaced2 destroyed or lost2 or in
absence of such eidence2 on such indemnity as the Board may deem sufficient!
(,6) NOMINATION:
A member may nominate a 0erson to receie the member?s interest in the Bank after
his death! Nomination shall be made in the 0rescribed form and entered in the register
ke0t at the Bank?s registered office! .rior a00roal of the Board shall be necessary if
the 0erson to be nominated is an em0loyee of the Bank! Nomination can be reoked
and fresh nomination made any number of times after due intimation in 8riting to the
Bank and on 0ayment of 0rescribed fee as decided by the Board from time to time for
eery subseBuent nomination!
(,3) DEAT9 OF A MEMBER:
"n death of a member2 the Bank may 0ay to the 0erson or 0ersons nominated a sum
re0resenting the alue of the member?s interest in the society 8ithin 1% months from
the death of the member! )n the absence of nomination2 the Bank may 0ay to such
0erson or 0ersons as may a00ear to the Board to be entitled to receie the same as
1&
heir or legal re0resentatie of the deceased member on his or their e>ecuting an
a00ro0riate deed of indemnity and on any other conditions as laid do8n by the Board!
(,8) LIABILITIES OF PAST MEMBERS AND ESTATE OF A DECEASED
MEMBER:
i/ The liability of a 0ast member or of the estate of a deceased member of the Bank for
the debts due to the Bank as it e>isted!
a! )n the case of a 0ast member2 on the date on 8hich he ceased to be a member
b! )n the case of a deceased member2 on the date of his death! Shall continue for a
0eriod of % years from such date!
ii/ Dhere the Bank is ordered to be 8ound u0 under the Act2 the liability of a 0ast
member 8ho ceased to be a member or of the estate of a deceased member 8ho died
8ithin % years immediately 0receding the date of the order of 8inding u02 shall
continue until the entire liBuidation 0roceedings are com0leted2 but such liability shall
e>tend only to the debts of the Bank as they e>isted on the date of cessation of
membershi0 or death2 as the case may be!
(,:) LIEN ON S9ARESA DIVIDENDS AND DEPOSITS:
The Bank shall hae the first and 0aramount lien or charge u0on all the shares2
diidends and de0osits of any member or 0ast member for all moneys due from him
to the Bank from time to time! The Bank may at any time set off any sum credited by
or 0ayable to the member or 0ast member to8ards 0ayment of any2 liability of such
member or 0ast member!
(.;) TRANSFER OF S9ARES:
A member may transfer his share or shares 58here there shall not be any accumulated
losses/ after holding them for not less than one year to any other member of the Bank
duly a00roed by the Board! The transfer is not com0lete until the name of the
transferee has been duly entered in the register of members and on 0ayment of
transfer fee as may be decided by the Board from time to time 50resently (s!100#7/!
Transfer of shares shall be refused to a member ifH7
a/ The member is indebted to the Bank either as a borro8er or as a surety!
b/ )t is detrimental to the interest of the Bank!
c/ )f the transferee does not fulfill conditions 0rescribed under Bye7la8 No! 11!
d/ )f the transferor does not 8ant to transfer all the shares held by him!
(.1) -ENERAL BODY:
i/ <eneral body of the Bank shall consist of all the ordinary and actie members of the
Bank!
1G
ii/ SubAect to the 0roisions of the Act and (ules2 the final authority of the Bank shall
est in <eneral Body!
iii/ <eneral Meeting shall be of t8o kinds2 iC! Annual <eneral Meeting and S0ecial
<eneral Meeting!
(.,) POWERS AND FUNCTIONS OF T9E -ENERAL BODY:
The Board of the Bank under a resolution shall call the Annual <eneral Meeting
8ithin a 0eriod of si> months after the close of financial year to transact follo8ing
business I
a/ To read F confirm the 0roceedings of last general body meeting
b/ Consideration F ado0tion of the annual re0ort
c/ Consideration F ado0tion of the audited statements of accounts2
d/ Consideration F ado0tion of the audit re0orts
e/ To consider and ado0t rectification re0ort of earlier audit
f/ A00ro0riation of net 0rofits and as recommended by the board as 0er the Act2 (ules
and bye7la8s!
g/ To take note of the annual budget F further deelo0ment 0lan2
h/ A00roal of the long7term 0ers0ectie 0lan and the annual o0erational 0lan2
i/ 6>0ulsion of members2 if any2
A/ Amendment of Bye7la8s2 if any2
k/ A00roal for a00ointment of Statutory # )nternal Auditors and fi>ation of their
remuneration as 0roided in the Act and Bye7la8s!
l/ A00roal of staffing 0attern2 as and 8hen necessary!
m/ Considering a statement sho8ing the details of the loans and adances to directors
and their relaties!
n/ A00roal2 the 0urchase of land or building or construction of building for Banking
0ur0ose!
o/ To take note of the efforts taken by the bank for the education F training to its
member F also 0re0are a ne>t year 0lan for the same! Any other matter to be 0laced
before it 8ith the 0ermission of the Chair0erson of the meeting!
(..) SPECIAL -ENERAL BODY MEETIN-:
16
The Chief 6>ecutie2 may at anytime2 on the direction of the Board2 call a S0ecial
<eneral Body Meeting of the Bank or shall call such meeting 8ithin 10 days after the
recei0t of reBuisition from the (egistrar or on reBuisition in 8riting from not less than
%G0 members or from 1#Gth of the total number of members of the Bank 8hicheer is
less to transact the business as stated in notice of the meeting!
(./) NOTICE: ANNUAL -ENERAL BODY MEETIN- AND SPECIAL -ENERAL
MEETIN-.
a) Annual <eneral Meeting of the Bank may be called by giing not less than 1& days
0rior notice in 8riting to all the members of the Bank!
) S0ecial <eneral Meeting of the bank may be called by giing not less than ' days
0rior notice in 8riting to all the members of the bank!
E) The (")0Ee "? -e(e!a@ Mee)0(= #ha@@ e aEE"$'a(0e* F %(#0=(e* Ce!)0?0Ea)e "?
)he A))e(*a(Ee. Th0# Ee!)0?0Ea)e #ha@@ e #0=(e* F A%)h"!0#e* 'e!#"(# "? )he
a(& a) )0$e "? -e(e!a@ Mee)0(=. Th0# #ha@@ e )he E"(E@%#01e '!""? "?
a))e(*a(Ee.
*) The notice of the Annual <eneral Meeting # S0ecial <eneral Meeting shall be
dis0layed on the Notice Board at the (egistered "ffice of the Bank and its branches
and 0ublished in a 8idely circulated ne8s0a0er and notice accom0anied by a co0y of
each of the audited balance7sheet2 0rofit and loss account together 8ith the auditors
certificate relating to the 0receding year and the re0ort of the Board thereon2 notice of
election to the Board2 if any and amendment to Byela8s2 if any!
e) The aboe said notice of the <eneral Meeting shall be made aailable to both2 Actie
and Non7actie members by any of the follo8ing modes2 namely H
i/ By local deliery or
ii/ By ordinary 0ost
iii/ By email
i/ Courier
/ Through the branches of the bank
?) Notice of the <eneral Meeting shall state the 0lace2 date and time of the meeting! )t
shall also state the 0lace2 date and time of holding of the adAourned meeting should it
be necessary to adAourn it in the absence of Buorum!
=) Non7recei0t of notice by members shall not be alid ground for 0ost0oning or
adAourning the <eneral Meeting!
h) Notice of the meeting shall be signed by the Chief 6>ecutie "fficer of the Bank!
(.4) GUORUM OF T9E -ENERAL BODY MEETIN-:
i/ The Buorum for the general meeting shall be one fifth of the total number of members
or 100 members 8hicheer is less!
1'
ii/ No business shall be transacted at any general body meeting unless there is a Buorum
at the time 8hen the business of the meeting is due to commence!
iii/ )f at the time fi>ed for the meeting2 Buorum is not constituted2 the meeting shall stand
adAourned and 8ould be held after half an hour at 8hich the Buorum 8ill not be
reBuired!
i/ )f at any time during the meeting sufficient number of members are not 0resent to
form the Buorum2 the Chairman or the member 0residing oer the meeting on his
o8n2 or on his attention being dra8n to this fact2 shall adAourn the meeting and the
business that remains to be transacted at this meeting2 if any2 shall be dis0osed off in
the usual manner at the adAourned meeting!
/ Dhere a meeting is adAourned under sub7clause 5iii/ or 5i/ the adAourned meeting
shall be held either on the same day or on such date2 time and 0lace as may be
decided by the Chairman or the member 0residing oer the meeting2 but 8ithin seen
days of the adAourned meeting!
i/ No business shall be transacted at any adAourned meeting other than the business on
the agenda of the adAourned meeting!
ii/ The adAourned meeting 8ill transact its regular business een 8ithout the Buorum
being 0resent at the meeting!
iii/ The Luorum for the S0ecial general meeting shall be one fifth of the total number of
members or 100 members 8hicheer is less!
(.6) C9AIRMAN OF T9E -ENERAL BODY MEETIN-:
The Chairman of the Board of +irectors shall 0reside oer the <eneral Body
Meeting! )n his absence2 the 4ice7Chairman and in their absence the members of the
Board shall elect one of the members to 0reside oer the <eneral Body Meeting!
(.3) RESOLUTIONS:
*nless other8ise s0ecifically 0roided in the Act2 (ules and these Bye7la8s2
resolutions shall be carried by a maAority of otes!
(.8) MINUTES OF T9E -ENERAL BODY MEETIN-:
Minutes of the 0roceedings of the <eneral Body Meetings shall be entered in a
minute book ke0t for the 0ur0ose 8ithin thirty days of the conclusion of eery such
meeting concerned and shall be sealed and signed by the Chairman and Chief
6>ecutie "fficer of the Bank after the same are a00roed by the board! The minutes
so signed2 shall be an eidence of the correct 0roceedings of the meetings!
1-
(.:) BOARD OF DIRECTORS:
i/ The 6>ecutie management of the Bank shall est in the hands of Board of
+irectors consisting of #%Eh N". "? +irectors *e'e(*0(= %'"( )he #0>e "? Ba(&.
S!.
N"
S0>e "? Ba(& <eneral
Category
S!C!#S!T Domen "BC +T7NT Total
1 A"1e
R#. 4;; C!. M1% 1 % 1 1 1'
N"T6H7 "ut of 1% directors to be elected from the general category from actie
members2 t8o directors shall be 8ith 0rofessional Bualifications as
0rescribed by (esere Bank of )ndia such Bualification means a Chartered
Accountants # )CDA # CS # CA))B # MBA 5Banking and finance/ # @a8
<raduate or 9aculty in banking field haing a e>0erience in the middle#
senior# to0 leel management for minimum 10 years! 5this is as 0er (B)
circular No! .CB!C)(!."T &1#09!101!01#%00'70-2 +t! %1#0&#%00-/!

E2'@a(a)0"(:
a/ "ne seat shall be resered for the actie member belonging to SC#ST!
b/ "ne seat shall be resered for the actie member belonging to the "ther
Back8ard Class!
c/ "ne seat shall be resered for the actie member belonging to the notified
Tribes 54imukta 3atis/2 Nomadic Ty0es or S0ecial Back8ard Classes!
NOTE : )f no 0erson is elected to any of the aboe three resered seats2 then
such seat or seats shall be filled in by nomination from amongst the
0ersons entitled to contest the election under sub section 51/ of
section '1 B!
d/ T8o seats shall be resered on the Board of +irectors for Actie Domen
members!5 Section '1C of the Act/ N"T6 H An indiidual Actie Domen
member of the Bank shall be eligible to contest the election! Dhere no
8oman member or 8omen members are elected then such seat or seats shall
be filled in by nomination from amongst the 8omen members entitled to
contest the election under sub section 5%/ of section '1 C!
(/;) ELIE-IBILITY OF BOARD OF DIRECTORS :
T" E"()e#) )he e@eE)0"( "? B"a!* "? D0!eE)"!# ?!"$ )he =e(e!a@ Ea)e="!F "? )he
aE)01e $e$e!# #h"%@* E"$'@F ?"@@"H0(= $"*e@ E!0)e!0a *e'e(*0(= %'"( )he #0>e
"? Ba(&.
S!. N". Ba(& Ca)e="!F Sha!e# De'"#0)
19
(De'"#0)# 0( C!.) A$).
(0( R#.)
A$).
(0( R#.)
1 More than G00 Cr! 14;;; AND 1;;;;;
NOTE H7 The elected directors shall kee0 the aboe de0osits for the entire tenure of
the board!
The 0ersons contesting from resere seat under section '1B and '1C shall com0ly
8ith G0 K of the criteria reBuired for general category!

(/1) C9AIRMAN AND VICE-C9AIRMAN:
a/ The Board of +irectors at its first Meeting after the election of the Board shall elect a
Chairman and 4ice7Chairman from amongst the elected +irectors for the 0eriod of
fie years! This 0eriod of fie years starts from the date of election of the bank! This
meeting shall be 0resided oer by the (eturning "fficer a00ointed by the State
Co7o0eratie 6lection Authority 5SC6A/ as 0roided in the MCS Act2 1960 and
(ules there under!
b/ The Chairman shall 0reside oer all meetings of the Board! )n the absence of the
Chairman 2 4ice7Chairman shall 0reside oer the meetings and in the absence of both
the Chairman and the 4ice7Chairman2 the +irectors shall elect the Chairman for that
meeting from amongst those 0resent in the meeting of the Board!
c/ The Chairman 0residing oer the meeting shall hae a casting ote in case there is
eBuality of otes!
d/ The 9unctional director shall not hae a right to ote in the election of Chairman #
4ice I Chairman!
(/,) POWERS AND FUNCTIONS OF T9E C9AIRMAN AND VICEC9AIRMAN:
1/ The Chairman shall hae the follo8ing 0o8ers and functionsH
a/ ,e shall 0reside oer the meeting of the <eneral body2 Board of +irectors and
any t8o Sub7committees of the board of +irectors only!
b/ The Chairman shall sign the 0roceedings of all the meetings 0resided oer by
him!
c/ )n the eent of eBuality of otes on a resolution the Chairman shall hae a casting
ote in the meeting!
d/ To conene A<M the meeting of the Board of +irectors2 6>ecutie Committee
and other Committees of 8hich he is the Chairman!
%0
e/ The Chairman may delegate any of his 0o8ers and function to the 4ice7
Chairman!
f/ The Chairman may take decisions as of an urgent and emergent nature affecting
the 0olicy of the Bank on behalf of the Board of +irectors2 6>ecutie Committee
or any other committees! The matter 8ill be 0laced before the ne>t meeting of the
concerned committee for ratification!
%/ )n the absence of the Chairman2 the 4ice7Chairman shall look after the 8ork of the
Chairman!
(/.) MINUTES OF T9E MEETIN- OF BOARD OF DIRECTORS :
Minutes of the 0roceedings of the Board of +irectors shall be entered in a minute
book ke0t for the 0ur0ose2 after the conclusion of eery such meeting concerned and
shall be signed by the Chairman and Chief 6>ecutie of the Bank before ne>t date of
meeting in 8hich the minutes 8ill be confirmed! The minutes so sealed and signed2
shall be an eidence of the correct 0roceedings of the meetings!
(//) POWERS AND FUNCTIONS OF T9E BOARD OF DIRECTORS :
1! The Board of +irectors may e>ercise all such 0o8er as may be necessary or
e>0edient for the 0ur0ose of carrying out its function under the arious Acts
a00licable!
%! Dithout 0reAudice to the generality of the foregoing 0o8ers2 such 0o8ers shall
include the follo8ing 0o8ers H
a! To admit members and to a00roe the list of Actie and non actie members!
b! To inter0ret the organiCational obAecties and set u0 s0ecific goals to be achieed
on8ards these obAecties!
c! To formulate and a00oint arious sub7committees as 0er the guidelines issued by
the (esere bank of )ndia and Coo0eratie de0artment from time to time!
d! To make 0eriodic a00raisal of o0erations!
e! To a00oint and remoe a Chief 6>ecutie "fficer or other em0loyees of the Bank2
f! To make 0roisions for regulating the a00ointment of em0loyees of the Bank and
the scales of 0ay2 allo8ances and other conditions of serice2 including
disci0linary action against2 such em0loyees!
g! To 0lace the annual re0ort2 annual financial statements2 annual 0lan and budget
for the a00roal of the general body!
%1
h! To consider audit and com0liance re0ort and 0lace the same before the general
body!
i! To reie8 membershi0 in other co7o0eraties!
A! To reie8 annual and su00lementary budget!
k! To raise funds!
l! To sanction loans to the members!
m! To inest Bank?s 9unds in 0ermissible securities and to determine inestment
0olicy from time to timeJ
n! To consider 0ro0osals for o0ening branches2 e>tension counters2 0ay offices2
ATM centers and any other 8orking offices of the bank!
o! To fi> the rates of interest on loans and adances and de0osit!
0! To arrange for election of the Board of +irectors of the Board!
B! To 0re0are 0olicies and regulations reBuired to conduct the banking business as
0er (B) guidelines!
r! To take such other measures or to do such other acts as may be 0rescribed or
reBuired under the Act or these Bye7la8s or as may be delegated by the general
body!
s! To reconstruct2 reschedule of any loans and adances as 0er the guidelines issued
by the (esere Bank of )ndia and Coo0eratie de0artment from time to time!
t! To arrange for 0ro0er training and education to its members!
(/4) DISGUALIFICATION FOR BEIN- A MEMBER OF T9E BOARD :
1! No member of the Bank shall be eligible for being elected2 or for being a member of
the Board if such member H
a! has been adAudged by a com0etent Court to be insolent or of unsound mindJ
b! is concerned or 0artici0ates in the 0rofits of any contract 8ith the BankJ
c! has been conicted for an offence inoling moral tur0itudeJ
d! holds any office or 0lace of 0rofit in the Bank2 .roided that the Chief 6>ecutie
"fficer of the Bank as may be notified by State <oernment from time to time or
a 0erson elected by the em0loyees of the Bank to re0resent them on the Board of
the Bank shall be eligible for being chosen as2 or for being2 a member of the
Board2
%%
e! is a director of any other *rban Co7o0eratie Bank or *rban Coo0! Credit
Society!
f! ,as interest in any 0ro0erty in his 0ersonal interest or any of his family member
is haing any interest in the 0ro0erty 0urchased or acBuired on lease#rental basis
by the Bank 8ithout the 0rior a00roal of the (egistrar!
g! is a 0erson against 8hom any amount due under a decree under the Act2
h! is retained or em0loyed as a legal 0ractitioner on behalf or against the Bank2
6>0lanation 7 for the 0ur0oses of this clause :legal 0ractitioner; has the same
meaning as in the clause 5i/ of sub7section 51/ of the section % of the Adocates
Act2 1961 5%G of 1961/
i! has been conicted for any offence under this Act2
A! is disBualified for being a member under the MCS Act 1960!
k! has been e>0elled as a member under the MCS Act 1960!
l! absents himself from three consecutie Board meetings and such absence has not
been condoned to by the Board!
m! Absents himself from t8o consecutie <eneral Body Meetings and such absence
has not been condoned by the members in the <eneral Body!
n! )f he 8ithdra8s the eligible de0osits as 0er Bye @a8s No!&0 any time before the
com0letion of the entire tenure of the board!
(/6) GUORUM OF BOARD OF DIRECTORS :
,alf the number of the total strength of the board of directors shall form a
Buorum!
N"T6 H7)f half number of the total number of directors is a fraction figure2 it
shall be rounded to the nearest figure on u00er sideJ and such rounded
figure shall constitute a Buorum!
9or the 0ur0ose of Buorum of Board of directors functional directors shall not be
counted! "ther than the meeting to elect the office bearer in all other meeting the
e>0ert directors shall be counted for Buorum!
(/3) VACANCY IN T9E BOARD OF DIRECTORS :
)f any acancy arises in the Board2 it shall be filled as 0er section '1 AAA 5&/ of the
Act!
(/8) MEETIN-S OF T9E BOARD OF DIRECTORS :
%1
1/ The maAority shall decide any Buestion brought for8ard for discussion at the
meeting of the Board! )n case of eBuality of otes2 the Chairman shall hae
casting ote!
%/ The 0roceedings of the meetings of the Board shall be recorded in the minute
book to be ke0t for this 0ur0ose!
1/ The Chief 6>ecutie shall conene the meeting of the Board at the instance of
the Chairman of the Bank!
&/ The Board shall meet at least once in eery month!
G/ The meetings of the Board shall normally be held at the (egistered "ffice of
the Bank or at any branch of the bank!
6/ The meetings of the Board shall be 0resided oer by the Chairman or in his
absence by the 4ice7Chairman and in the absence of both Chairman and 4ice7
Chairman2 the +irectors 0resent in the meeting shall elect a Chairman for the
meeting from amongst themseles2
'/ Seen days 0rior notice shall ordinarily be necessary for the meeting of the
Board2
-/ The chairman of the Board of +irectors shall be the chairman of the Board
and any t8o of the committees!
(/:) COMMITTEES OF T9E BOARD :
The Board shall constitute committees or subcommittees as may be considered
necessary! 6ach committee shall consists of not more than fie members!
(4;) DISPUTE SETTLEMENT AND REDRESSAL COMMITTEE :
The Annual <eneral Body shall a00oint a committee as referred in Sec! -9 AB 51/ of
the Act2 8ith the name and style of :+is0ute Settlement and (edressal Committee; to
settle the dis0ute2 the Buestions2 differences2 obAections or dis0utes 8hatsoeer arries
bet8een the society and its ,on?ble members# customers other than the dis0utes
regarding the loans and adances and its recoery! The com0osition of the committee
to be so a00ointed shall be as underH
a/ Chairman I 6minent Banker 5,e shall be an actie member and not from the
management of the society!
b/ Members I T8o e>0ert 8ho shall be actie member from the field of economics
#Coo0eration#banking or haing 0rofessional e>0erience in the field of
accountancy F audit # la8! The meeting of such committee shall be held at least
once in a month! The duty of the committee is to gie 0ro0er suggestions to arrie
%&
at a settlement amicably 8ithin the frame8ork of la8s2 bye7la8s2 rules2 directies
and guidelines of (!B!)! and the (egistrar and as 0er the 0ractice in the field of
Banking and Coo0eration!
(41) C9IEF E7ECUTIVE OFFICER AND POWERS AND FUNCTIONS OF T9E
C9IEF E7ECUTIVE OFFICER:
The Chief 6>ecutie "fficer of the Bank shall be a00ointed by the Board as 0er fit
and 0ro0er criteria issued by the (egistrar time to time! ,e shall be a full time
em0loyee of the Bank and he shall aid and assist the Board in their functions! The
Chief 6>ecutie shall be functional director of the Board! The Chief 6>ecutie2 under
the general su0erintendence2 direction and control of the Board shall e>ercise the
0o8ers and discharge the functions s0ecified belo8H7
a/ day7to7day management of the business of the Bank!
b/ o0erating the accounts of the Bank and 8ill be res0onsible for making
arrangements for safe custody of cash!
c/ signing on the documents for and on behalf of the Bank2
d/ making arrangements for the 0ro0er maintenance of arious books and records of
the Bank and for the correct 0re0aration2 timely submission of 0eriodical
statements and returns in accordance 8ith the 0roisions of this Act2 the (ules
and the Bye7la8s!
e/ conening meetings of the <eneral Body2 of the Bank2 the Board and the
6>ecutie Committee and other committees or sub7committees constituted under
the Act and maintaining 0ro0er records for such meetings!
f/ making a00ointments to the 0osts in the Bank as may be a00roed by the Board
of +irectors!
g/ assisting the Board in the formulation of 0olicies2 obAecties and 0lanning!
h/ furnishing to the Board 0eriodical information necessary for a00raising the
o0erations and functions of the Bank2 as 0er calendar of reie8s issued by (B)2
i/ To gie 0ro0er suggestion F clear o0inion in 8riting for all the matters 0laced
before the board of directors!
A/ a00oint the 0erson to sue or be sued on behalf of the Bank2
k/ 0resent the draft annual re0ort and financial statements for the a00roal of Board
8ithin thirty days of closure of the financial years!2
l/ 0erform such other duties and e>ercising such other 0o8ers2 as may be s0ecified
in the Bye7la8s of the Bank or as delegated by the Board of +irectors2
%G
m/ the Chief 6>ecutie can delegate any of its 0o8er to any of the official of the
Bank 8ith 0rior 0ermission of the Board of +irectors for such delegation!
n/ )t shall be the duty of the C6" to maintain and record the 0resenty of the
members attending <eneral Body neatly and kee0 that record in his 0ersonal
custody!
o/ )t shall be the duty of the C6" to send the list of members 8ho attended the
A<M 8ithin1 month to the office of the (egistrar! ,e shall also dis0lay the same
list on the notice board of all branches and at (egistered "ffice of the bank!
(4,) DEPOSITS :
a! +e0osits may be acce0ted at any time 8ithin the limits determined under the Act
and (ules2 on such rates of )nterest and subAect to such (ules and regulations as
may be a00roed by the Board of +irectors and also subAect to the directies
issued by the (esere Bank of )ndia in this behalf from time to time!
b! +e0osits may be receied in current2 saings2 fi>ed2 recurring2 and cumulatie
and under any other S0ecial Scheme5s/2 subAect to $EC norms!
c! All the de0osits of the Bank shall be insured under +)C<C Act2 1961 and shall be
goerned by the arious sections of the +)C<C Act!
d! The Bank shall follo8 all the instructions2 guidelines and directies issued by
(B) from time to time in regard to o0ening and conduct # monitoring of de0osit
Accounts!
(4.) LOANS AND ADVANCES :
a/ @oans2 cash credits and # or oerdrafts and discount and 0urchase of bill may be
granted to members on security or securities mentioned belo8 or other security or
securities a00roed by the Board or 8ithout security!
1/ .ersonal security and # or surety # sureties of other member5s/ or nominal
member5s/
%/ Collateral security of moable and immoable 0ro0erty! !
1/ )ndustrial2 mercantile2 agricultural and other marketable commodities or
machinery under 0ledge2 hy0othecation or charge of the Bank!
&/ .ledge of <oernment2 Trustee Securities2 Shares of a00roed com0anies2
debentures and fi>ed de0osits 8ith the Bank!
G/ )nsurance 0olicies assigned to the Bank 8ithin the surrender alue!
%6
6/ Darehouse recei0ts!
'/ <old and Siler "rnaments # bullions!
-/ Any other tangible security! e!g! I ehicles!
9/ Any other security as 0ermitted by (esere Bank of )ndia!
b/ @oans and adances may be granted to non7members against the security of their
term de0osits 8ith the Bank!
c/ @oans may be granted to nominal members as 0er (B) guidelines!
d/ The Board shall frame detailed loan regulations# 0olicy 0rescribing the 0rocedure
for sanction of loans2 margins to be maintained2 0ro0ortion of unsecured loans2
0ro0er terms and conditions and the nature of securities acce0table for loans and
adances for different 0ur0oses in accordance 8ith the guidelines of the (esere
Bank of )ndia2 higher financing agency and the (egistrar from time to time!
e/ The a00lication for @oans#Adances shall be dealt 8ith by the Board #Sub7
committees 8ho may grant the same or any 0ortion thereof on such terms and
conditions2 as they think fit or may refuse the same 8ithout being under any
obligation to assign reason for doing so! The board of directors shall gie alid
reason 8hile sanctioning the loan 0ro0osals # taking faorable decisions for 8hich
the chief e>ecutie officer has gien aderse remarks!
f/ Member or nominal member2 borro8er or a surety from 8hom the recoery of
loans has been effected 8ith coercie 0rocess i!e! after haing receied an a8ard
and further issue of demand notice for a8arded amount shall not be eligible to
stand surety to any other member! ,o8eer2 he may be continued as member on
the clear understanding that he 8ill not be entitled to any fresh loan for a 0eriod
of 1 years from the date of full and final discharging his # her liability # liabilities
as a borro8er or as a surety! The bank shall maintain and if necessary 0ublish
a list of such members and nominal members ineligible for loans in future!
g/ All loans and adances shall be goerned by guidelines issued by (esere Bank
of )ndia from time to time!
(4/) MA7IMUM LIMIT FOR NON BANKIN- E7PENSES:
a/ The bank shall not gie any donation or adertisement to any concern in 8hich
the +irector#s or his family members are haing 0ersonal interest!
b/ The bank shall not s0onsor third 0arty adertisement!
c/ 9or incurring any e>0enses of social nature2 bank shall form a social obligation
fund and 0re0are a se0arate (ules to distribute the same!
%'
d/ The Bank shall restrict its yearly e>0enses to8ards donation2 social hel0 etc!
8ithin the limit of 1K of the last years declared Net 0rofit!
(44) DISPOSAL OF NET PROFIT :
The net 0rofit of the Bank shall be calculated and dis0osed off in accordance 8ith the
0roisions of the MCS Act2 1960 and (ules framed there underH
1/ The <eneral body on the recommendations of the Board may a00ro0riate the net
0rofit as underH7
a/ To carry not less than %GK of the net 0rofit to the Statutory (esere 9und!
b/ To transfer an additional amount as may be recommended by the board of
directors from the net 0rofit to S0ecial (esere 9und for meeting unforeseen
losses2 subAect to aailability of Net .rofit!
%/ SubAect to such conditions as may be 0rescribed2 the balance of net 0rofit may be
utiliCed for all or any of the follo8ing 0ur0osesH
a/ To transfer for 0ayment of diidend to members at the rate decided by the annual
general body as 0er Act F (ules!
b/ To transfer to election fund eBual to the 1#Gth amount of the e>0enses incurred for
the 0receding election!
c/ To transfer for contribution to the education fund as may be recommended by the
Board of +irectors out of the balance of net 0rofit to be utiliCed for the education
and training of directors2 em0loyees and members of the bank!
d/ To transfer to inestment fluctuations resere as 0er (B) guideline!
e/ To transfer to technological deelo0ment fund amount not e>ceeding 10K of the
balance of net 0rofit as may be recommended by the Board of +irectors!
f/ To carry any amount to the building fund and any other funds created by the
bank and as may be a00roed by the <eneral Body Meeting and the balance if
any2 after a00ro0riations as aboe shall be carried to ne>t year!
(46) LINKIN- OF S9ARE 9OLDIN- WIT9 LOAN LIMITS:
The shareholding of a member in the Bank shall be in the follo8ing 0ro0ortion to his
borro8ings!
a/ GK of the borro8ings if such borro8ings are unsecured basis!
b/ % !GK of the borro8ings in case of secured borro8ings!
%-
c/ %!GK of the borro8ings in case of small scale industrial units2 of 8hich 1K to be
collected initially and the balance 1!GK to be collected in the course of ne>t
% years!
.roided that no member shall hold more than 1#Gth of the total share ca0ital of
the Bank!
.roided further that any change in the 0ercentage of the share linking by the
(esere Bank of )ndia shall be binding on the borro8er!
.roided further that if the ca0ital adeBuacy ratio of the bank is more than 1%K
then the board may change the share linking 0ercentage as 0er guidelines of
(esere Bank of )ndia in case of secured loans!
(43) INVESTMENTS OF FUNDS :
The Bank may inest or de0osit its fundsH
a/ )n a co7o0eratie Bank2 State Co7o0eratie bank2 or Central Co7o0eratie Bank!
b/ )n any of the securities s0ecified in Section %0 of the )ndian Trust Act or
c/ )n the shares or securities or assets of a subsidiary institution or any other
institution or
d/ )n such other mode as may be 0rescribed or 0ermitted by (B)!
6>0lanationH Bank means any banking com0any as defined in the Banking
(egulation Act2 19&9 and includesH
1/ The State Bank of )ndia constituted under the State Bank of )ndia Act2
19GG and the amendments thereto from time to time2
%/ A subsidiary bank as defined in the State Bank of )ndia 5Subsidiary
Banks/ Act2 19G9 and the amendments thereto from time to time!
1/ A nationaliCed # strong scheduled commercial banks!
&/ A corres0onding ne8 bank constituted under the Banking Com0anies
5AcBuisition and Transfer of *ndertakings/ Act2 19'0 or a corres0onding
ne8 bank constituted under the Banking Com0anies 5AcBuisition and
Transfer of *ndertakings/ Act2 19-0 and the amendments thereto from
time to time!
G/ Any Multistate scheduled Co7o0eratie Bank and any other strong
scheduled coo0eratie bank haing 0rofit for continuous 0eriod of last
three years along8ith audit classification 8ith :A; or :B;!
%9
(48) RESERVE FUND:
a/ )n addition to the sum 0rescribed under the Act2 (ules and Bye7la8s2 all
admission fees2 entrance fees2 nominal membershi0 fees2 amount of forfeited
shares2 forfeited diidends and donations shall be carried to the (esere 9und!
b/ The (esere 9und shall be se0arately inested as 0er Act F (ules!
c/ Bank may utiliCe an amount from the (esere 9und for 0urchase of any assets
8ith the 0rior 0ermission of The (egistrar and as 0er 0roisions of the MCS Act
F (ules!
(4:) DIVIDEND :
a! The diidend declared shall be 0aid to the 0erson 8hose name stands as the
registered share holder in the books of the Bank on the 11Nst March of the year to
8hich diidend relates!
b! +iidend shall be 0ro0ortionate to the amount 0aid on shares and the 0eriod in
8hole months for 8hich the amount stood to the credit of the shareholder!
c! +iidend shall be 0ayable at 0ar at the Bank?s ,ead "ffice as 8ell as at the
branch offices!
d! Any diidend remaining undra8n for three years after haing been declared shall
be forfeited and shall be carried to the (esere 9und of the Bank!
e! The Bank may distribute the ma>imum diidend of 1GK2 8hen the C(A( is at
minimum leel as 0rescribed by (B) from time to time for the 0receding financial
year!
(6;) ACCOUNTSA RECORDS D AUDIT:
a! Accounts F (ecords shall be maintained in forms 0rescribed or a00roed by the
registrar F (B)! Any member of the bank may ins0ect any of the registers or
records during office hours in so far as it relates to his o8n business transactions!
b! The accounts of the Bank shall be audited by an auditor a00ointed from the 0anel
of auditors a00roed by the (egistrar2 at least once in each year and the
remuneration of auditors shall be fi>ed by the (egistrar or the Bank as the case
may be!
c! The a00ointment of the auditor and his remuneration shall be a00roed in the
<eneral Body Meeting of the Bank! The Bualifications #disBualifications2 0o8ers2
rights and duties of the auditor shall be as 0rescribed under the Act2 and (B)
guidelines!
(61) COMMON SEAL :
10
The Bank shall hae a common seal 8hich 8ill remain in the custody of the Chief
6>ecutie and shall be affi>ed in the 0resence of a +irector and the Chief 6>ecutie
as 0er s0ecific resolution of the Board of +irectors!
(6,) AMENDMENT TO BYE-LAWS :
a/ 9or making any amendments to the Bye7la8s of the Bank2 1& days clear notice
shall be gien to the members of the Bank!
b/ None of these Bye7la8s shall be amended2 altered or rescinded or any addition to
be made thereto e>ce0t by a ote of the maAority consisting of not less than t8o
third of the members 0resent and oting at a <eneral Meeting!
c/ Any addition amendment2 alteration or rescission resoled u0on at such meeting
shall take effect from the date of recei0t of the (egistrar?s a00roal in 8riting!
(6.) EDUCATIONAL COURSE FOR MEMBERS :
The Bank shall organiCe co7o0eratie educational 0rograms for its members2 directors
and em0loyees and sufficient funds in this regard shall be earmarked as 0er
reBuirement!
(6/) PROVIDENT FUND :
The Bank shall also maintain a Contributory .roident 9und or contribute eBually to
the 6.9 +e0artment as the case may be for the benefits of its em0loyees in
accordance 8ith the 0roisions of the 6m0loyees .roident 9und and Miscellaneous
.roisions Act2 19G%!
(64) SERVICE RULES :
The Bank shall hae serice (ules for regulating the serice conditions of its
em0loyees as formulated and amended by the Board from time to time!
(66) WINDIN- UP :
)f 8inding u0 of the Bank is necessary2 it shall be done in accordance 8ith the
0roisions of the Act and (ules made there under!
(63) ASSOCIATION OF EMPLOYEES IN T9E MANA-EMENT DECISION
MAKIN- PROCESS :
The Bank shall deise the 0rocedures through administratie instructions for the
association of em0loyees in the management decision making 0rocess!
11
(68) MISCELLANEOUS:
1/ The Bank shall become member of the Maharashtra State Co7o0! Bank and +istrict
Central Co7o0eratie Bank! The Bank may be a subscribing member of the follo8ing!
a! The State 9ederation of *rban Co7o0eratie BanksJ
b! The State Association of *rban Co7o0eratie BanksJ
c! The (egional # +istrict Association of *rban Co7o0eratie BanksJ
d! The Maharashtra (aAya Sahakari Sangh # the +istrict Co7o0eratie BoardJ
e! )ndian )nstitute of Banking and 9inanceJ
f! )ndian Bank?s AssociationJ
g! National Co7o0eratie *nion of )ndiaJ
h! National 9ederation of *rban Co7o0eratie Banks and Credit Societies @td!
i! any other 9ederation # Associations # Sangh # Board related to the Banking sector!
%/ No act of the <eneral Body or the Board shall be deemed inalid by reason of any
defect in the election of a Member thereof or by reason of any acancy therein not
haing been filled in!
a! )f any doubt arises in the inter0retation of the Bye7la8s of the Bank2 the same
shall be referred to the (egistrar for his adice and his decision shall be final!
b! 6>ecution of +ecrees2 orders and decisions shall be as 0er the 0roisions of @a8!
c! A00eals and reie8s shall be as 0er the 0roisions of @a8!
d! "ffence and 0enalties shall be as 0er the 0roisions of @a8!
e! 9iling of returns to the (egistrar shall be as 0er the 0roision of @a8!
f! The matters 8hich hae not been 0roided in the aboe Bye7la8s shall be
decided in accordance 8ith the 0roisions of Act and (ules!
MMMMM
1%
11