43.Restrictions on borrowings
(1)A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as may be prescribed, or specified by the by-laws of the society :
Provided that, the co-operative credit structure entity shall adopt its own policies regarding interest rates on deposits and loans in conformity with 8[guidelines of the Reserve Bank of India or the National Bank.]
(2)If in the opinion of the Registrar it is necessary so to do for ensuring safety of the funds obtained under sub-section (1), for proper utilisation of such funds in furthrance of the objects of the society or societies concerned and for keeping them within the borrowing limits as laid down in the rules and by-laws, the Registrar may, by general or special order, impose additional conditions on any society or class of societies, subject to which and the extent upto which such society or such class of societies may receive deposits, issue debentures or raise loans from any creditor other than a Central Bank] :
Provided that, nothing in this sub-section shall apply to a society which has not taken any financial assistance from the Government in the form of share capital, loan 2[, subsidy] or guarantee and such society may adopt its own borrowing policy having regard to its financial position. However, such society shall send to the Registrar, in writing, full details about its borrowing policy, and change, if any, introduced in such policy at any time :]
Provided further that, nothing in this sub-section shall apply to the co-operative credit structure entity. However, such entity may adopt its own policy in confirmity with 4[guidelines of the Reserve Bank of India or the National Bank.]]
(3)Notwithstanding anything contained in sub-sections (1) and (2), and subject to the guidelines issued by the Reserve Bank of India and the National Bank, from time to time, a co-operative credit structure entity may,—
(a)borrow from any financial institution regulated by the Reserve Bank of India, keeping in view the interest of the society and its members;
(b)decide interest rates on deposits and loans; and
(c)decide loan policies and issues relating to individual loans.]
