Section 43 in The Punjab Co-operative Societies Rules, 1963
43. Restriction on borrowing by Co-operative Society. [Sections 46 and 47]
(1)Subject to the provisions of sub-rule (2), a Co-operative Society shall not receive deposits and loans whether from members or non-members which exceed the limit fixed from time to time in a general meeting subject to the approval of the Registrar who may at any time reduce it.(2)A Co-operative Society which accepts deposits and loans from members only and has no liability to any person other than the members, may receive such deposits and loans in excess of the limits referred to in sub-rule (1) if the excess amount is deposited in a Co-operative Bank to which it is affiliated or is revested in Government Securities specified in section 20 of the Indian Trusts Act, 1882; provided that the amount so deposited or invested, or any part thereof, is not withdrawn or otherwise utilised except for the payment of the deposits accepted in excess of the aforesaid limit.(3)No Co-operative Society shall accept loans or deposits whether from members or non-members at a rate of interest which exceed by more than three per cent the interest paid on similar types of deposits or loans by the Central Co-operative Bank within whose area of operation the Co-operative Society is situated except that the Registrar may by general or special order grant exemption or relaxation to any class of Co-operative Societies or individuals Co-op Society from the operation of this rule.
