Section 79 in Tamil Nadu Co-operative Societies Rules, 1988
79. Investment of funds in a banking company.
(1)A society may apply to the Registrar for grant of permission to invest or deposit its funds in the deposits of a banking company, if there is no branch of the financing bank or a co-operative bank to render the banking service required by it or the existing branch of the financing bank or a co-operative bank is not able to, or cannot, render the services required by it to carry on its business. The application made to the Registrar shall be in Form No. 32.(2)The Registrar may grant permission to a society to invest or deposit its funds in the deposit of any banking company after satisfying himself that there is no branch of the financing bank or a co-operative bank available to render the banking services required by the society or an existing branch or the financingbank or a co-operative bank is not able to, or cannot, render the services required by the society to carry on its business.(3)Such permission shall not be granted for more than one year at a time and the maximum amount that can be so invested in any or all of such banking companies shall not be in excess of the requirements of the society for obtaining the banking services required by it and shall not result in diversion of funds outside the co-operative sector.
