SAHAKARA SINDHU
Department Of Cooperation, Government of Karnataka

URBAN CO-OPERATIVE BANKS & CREDIT SOCIETIES (Non-Agriculture)

1) What are the norms for the registration of Non-Agricultural Credit Co-operative societies. ?

    a. The persons who are interested to form Non-Agricultural Credit Co-operative societies should conduct a meeting. In that meeting the name of the         society, area of operation and its objects and a minimum of 10 promoters should be choosen. Among them one person should be a chief promoter.

    b) The proposal seeking permission for collection of Initial share capital should have the following documents.
        1. Registration Application in schedule-A.
        2. Bio-data of promoters.
        3. Affidavit in stamp paper.
        4. Photos of promoters.
        5. Draft By-law.

    c) After collection of Initial share capital, proposal for registration of the society should be submitted with the following documents.
        1. Registration Application in schedule A- Signed by all the share holders.
        2. Challan copies of the Share amount deposited in DCC Bank.
        3. List containing the details of Name, Age, Address, Share amount paid, Share fees, entrance fees.
        4. 5 copies of Bye-laws.
        5. Treasury challan of payment of govt. fees as per section 6(2) (F) of the KCS Act 1959.

As per area of operation the following fees should be paid.

2) Which are the circulars to be followed while registering a Non-Agricultural Credit Co-operative Society ?

    The following circulars to be followed:-

i. UBC-1/UMC/99/93-94 dated 2-2-1994 (Circular No-19)
ii. UBC/UBA (2) 7-95-96 dated 14-3-1996
iii. RSR/127/XMC/2007-08 dated 26-2-2008

3) Which are the documents to be submitted for amendment of Bylaws of Urban Banks and Non-Agricultural Credit Co-operative Societies?

    i. Notice of the Annual/Special General body meeting.
    ii. Proceedings of the Annual/ Special General body meeting.
    ii.) Information in form No I to VI.
    iv. Existing Bye law copy of the society (certified).
    v. Latest audited financial statements of the society.
    vi. Treasury challan for having remitted the fees as per the govt. notification No.CMW/70/GM/2001 dated 20-6-2003.
    vii. As per the area of operation the following fees should be paid.

4) How the Cadre strength, Pay scales & allowances of Employees of Urban Co-operative Banks & Non Agricultural Credit Co-operative societies are approved?

     Subject to the budget allotment sanctioned by the general body, the managing committee of the urban co-operative banks & Non agriculture credit co-operative Societies shall from time to time determine the strength of the establishment there of with reference to the financial position of the Co-operative Society, as per rule 17(1) of Karnataka co-operative societies Rules 1960.

    Provided that in respect of a Urban Co-operative Bank & Non Agricultural Credit Co-operative society which is under loss continuously during the preceding three years or where there is an accumulated loss or where the ratio of establishment expenditure to the working capital as at the end of preceding year exceeds two percent, prior approval of the Registrar shall be obtained for any such determination of or increase in the scale of pay & other allowances.

5) What are the documents to be submitted for such approval?

    a. Board Resolution.
    b. Financial statements of last three years.
    c. Sanctioned order copies.
    d. Present salary statements of employees.
    e. Proposed salary statements.
    f. Checklist having details of net profit.
    g. Working capital, establishment cost, NPA, recovery percentage, deposits, etc.
    h. Budget Statement.

6) How the employees of Urban Co-operative Banks & Non Agricultural Credit Co-operative societies are recruited?

    Recruitment of employees of Urban Co-operative Banks & Non Agricultural Credit Co-operative societies are made in accordance with the provisions of Karnataka Co-operative Society Rules 1960 & directions issued by the government under section 30 (b)(1) of KCS Act vide No.CMW 15 CLM 2005 dated 3-2-2005 its amendments.

Each society shall have a recruitment authority for the purpose of selection of candidates as follows:-
    1. The chairman of the Society                                                       - Chairman
    2. Not more than two directors to be elected by the committee
        (one among them may be Vice Chairman if any)                          - Member
    3. Registrar of Co-operative societies, or his Committee                 - Member
    4. Chief Executive of the Society                                                    - Member convener

7) What is the procedure for opening branch of Non Agricultural Credit Co-operative societies?

    The Non Agricultural Credit Co-operative societies have to submit the proposal to Registrar of Co-operative Societies along with the following documents.
1. Board regulation to open a branch.
2. Audit report for the last 3 years.
3. Planning report for future 5 years.

8) How the one time settlement scheme is implemented in Urban Banks and Non-Agricultural Credit Co-operative Society?

    One time settle is introduced as per RBI circular in order to reduce the quantum of Non Productive Assets, (NPA) concession is given in rate of interest of defaulted loans if the loans are settled in one installment. This benefit is sanctioned to the Non-Agricultural Credit Co-operative Societies also. Based on the cost of funds of the institution the proposals are verified and the permission is given to the Urban Banks and Non-Agricultural Credit Co-operative Societies.

9) What are the benefits given to Weavers/Fishermen in Urban Banks and Non-Agricultural Credit Co-operative Societies?

    Urban Banks and Non-Agricultural Credit Co-operative Societies sanction loans for weaving/fishing purpose at 3% for the weavers/fisheries. For this loan government is providing subsidy at the rate of 9.5%. The claim bills submitted by the Urban Banks and Non-Agricultural Credit Co-operative Societies are scrutinized by district Deputy Registrars of Co-operative Societies & Deputy Directors of Co-operative audit are verified in this office and submitted to the government /Textile Development Commissioner for sanction.