Section 56. Act to apply to co-operative societies subject to modifications

56. Act to apply to co-operative societies subject to modifications .—[8] [Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act], shall apply to, or in relation to, co-operative societies as they apply to, or in relation to, banking companies subject to the following modifications, namely:— (a) throughout this Act, unless the context otherwise requires,— 1. S. 53 renumbered as sub-section (1) thereof by Act 28 of 2005, s. 57 and Sch. III (w.e.f. 10-2-2006). 2. Subs. by s. 57 and Sch., III ibid. , for "banking company or institution or to any class of banking companies". 3. The words "or any of their branches functioning or located in any Special Economic Zone established under the Special Economic Zones Act, 2005 (28 of 2005)" omitted by Act 17 of 2007, s. 3 (w.e.f. 23-1-2007). 4. Ins. by Act 28 of 2005, s. 57 and Sch. III (w.e.f. 10-2-2006). 5. Subs. by Act 17 of 2007, s. 3, for "A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament" (w.e.f. 23-1-2007). 6. Ins. by Act 58 of 1968, s. 20 (w.e.f. 1-2-1969). 7. Ins. by Act 23 of 1965, s. 14 (w.e.f. 1-3-1966). 8. Subs. by Act 39 of 2020, s. 4, for certain words (w.e.f. 1-4-2021). (i) references to a "banking company" or "the company" or "such company" shall be construed as references to a co-operative bank; (ii) references to "commencement of this Act" shall be construed as references to commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965); commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 1[(iii) references to "memorandum of association" or "articles of association" shall be construed as references to bye-laws; (iv) references to the provisions of the Companies Act, 1956 (1 of 1956), except in Part III and Part IIIA, shall be construed as references to the corresponding provisions, if any, of the law under which a co-operative bank is registered; (v) references to "Registrar" or "Registrar of Companies" shall be construed as references to "Central Registrar" or "Registrar of Co-operative Societies", as the case may be, under the law under which a co-operative bank is registered;] (b) in section 2, the words and figures "the Companies Act, 1956 (1 of 1956), and" shall be omitted; (c) in section 5,— 2[(i) after clause (cc), the following clauses shall be inserted namely:— (cci) "co-operative bank" means a state co-operative bank, a central co-operative bank and a primary co-operative bank; (ccii) "co-operative credit society" means a co-operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank; 3[(cciia) "co-operative society" means a society registered or deemed to have been registered under any Central Act for the time being in force relating to the multi-State co-operative societies, or any other Central or State law relating to co-operative societies for the time being in force;] registered under any Central Act for the time being in force relating to the multi-State (cciii) "director", in relation to a co-operative society, includes a member of any committee or body for the time being vested with the management of the affairs of that society; 3[(cciiia) "multi-State co-operative bank" means a multi-State co-operative society which is a primary co-operative bank; (cciiib) "multi-State co-operative society" means a multi-State co-operative society registered as such under any Central Act for the time being in force relating to the multiState co-operative societies but does not include a national co-operative society and a federal co-operative;] State co-operative societies but does not include a national co-operative society and a federal (cciv) "primary agricultural credit society" means a co-operative society,— (1) the primary object or principal business of which is to provide financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including the marketing of crops); and (2) the bye-laws of which do not permit admission of any other co-operative society as a member: 1. Ins. by Act 39 of 2020, s. 4 (w.e.f. 1-4-2021). 2. Subs. by Act 61 of 1981, s. 61 and Sch., II for sub-clause (i) (w.e.f. 1-5-1982). 3. Ins. by Act 24 of 2004, s. 2 (w.e.f. 1-3-1966). Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose; (ccv) "primary co-operative bank" means a co-operative society, other than a primary agricultural credit society,— (1) the primary object or principal business of which is the transaction of banking business; (2) the paid-up share capital and reserves of which are not less than one lakh of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member: Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose; (ccvi) "primary credit society" means a co-operative society, other than a primary agricultural credit society,— (1) the primary object or principal business of which is the transaction of banking business; (2) the paid-up share capital and reserves of which are less than one lakh of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member: Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose. Explanation .—If any dispute arises as to the primary object or principal business of any co-operative society referred to in clauses (cciv), (ccv) and (ccvi), a determination thereof by the Reserve Bank shall be final; (ccvii) "central co-operative bank",[1] * "primary rural credit society" and "state co-operative bank" shall have the meanings respectively assigned to them in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);] 2[(ii) clause (nb) shall be omitted;] 3* * * * * * (e) in section 6, in sub-section (1),— 4* * * * * * (ii) in clause (d), after the word "company", the words "co-operative society," shall be inserted; 1. The words "co-operative society," omitted by Act 24 of 2004, s. 2 (w.e.f. 1-3-1966). 2. Cl. (d) omitted by Act 16 of 2025, s. 14 (w.e.f. 15-12-2025). 3. Cl. (d) omitted by Act 39 of 2020, s. 4 (w.e.f. 1-4-2021).