4. Central Registrar.—(1) The Central Government may appoint a person to be the Central Registrar
of Co-operative Societies and may appoint such other persons as it may think fit to assist the Central
Registrar.
(2) The Central Government may, by notification, direct that any power exercisable by the Central
Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall,
in relation to such society, and such matters as may be specified in the notification, be exercisable also by
any other officer of the Central Government or of a State Government as may be authorised by the
Central Government subject to such conditions as may be specified therein:
Provided that no officer of a State Government shall be empowered to exercise such power in relation
to a national co-operative society.
5. Multi-State co-operative societies which may be registered.—(1) No multi-State co-operative
society shall be registered under this Act, unless,—
(a) its main objects are to serve the interests of members in more than one state; and
(b) its bye-laws provide for social and economic betterment of its members through self-help and
mutual aid in accordance with the co-operative principles.
(2) The word “limited” or its equivalent in any Indian language shall be suffixed to the name of every
multi-State co-operative society registered under this Act with limited liability.
6. Application for registration.—(1) For the purposes of registration of a multi-State co-operative
society under this Act, an application shall be made to the Central Registrar in such form and with such
particulars as may be prescribed.
(2) The application shall be signed,—
(a) in the case of a multi-State co-operative society of which all the members are individuals, by
at least fifty persons from each of the state concerned;
(b) in the case of a multi-State co-operative society of which the members are co-operative
societies, by duly authorised representatives on behalf of at least five such societies as are not
registered in the same State; and
(c) in the case of a multi-State co-operative society of which another multi-State co-operative
society and other co-operative societies are members, by duly authorised representatives of each of
such societies:
Provided that not less than two of the co-operative societies referred to in this clause, shall be
such as are not registered in the same State;
(d) in the case of a multi-State co-operative society of which the members are co-operative
societies or multi-State co-operative societies and individuals, by at least—
(i) fifty persons, being individuals, from each of the two States or more; and
(ii) one co-operative society each from two States or more or one multi-State co-operative
society.
(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State
co-operative society and the persons by whom or on whose behalf such application is made shall furnish
such information in regard to the society as the Central Registrar may require.
7. Registration.—(1) If the Central Registrar is satisfied—
(a) that the application complies with the provisions of this Act and the rules;
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(b) that the proposed multi-State co-operative society satisfies the basic criterion that its objects
are to serve the interests of members in more than one state;
(c) that its bye-laws provide for social and economic betterment of its members through self-help
and mutual aid in accordance with the co-operative principles;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules,
he may register the multi-State co-operative society and its bye-laws.
1
[(2) Without prejudice to the provisions of sub-section (1), the Central Registrar may register a
multi-State co-operative society if the aggregate value of the paid-up capital and provision of reserves
along with liquidity, exposure and other prudential norms specified in bye-laws of the proposed
multi-State co-operative society in the business of thrift and credit are in accordance with such guidelines
as may be prescribed:
Provided that the multi-State co-operative societies registered before the commencement of the
Multi-State Co-operative Societies (Amendment) Act, 2023 shall meet such norms within a period of five
years from the date of commencement of the said Act:
Provided further that if the liquidity, exposure, prudential and other parameters of the multi-State
credit society do not meet such norms within the period mentioned above, the Central Registrar shall have
powers to issue such directions as it deems appropriate to such society to take relevant action:
Provided also that in the case of multi-State co-operative bank, the aggregate value of the paid-up
capital and provision of reserves along with liquidity norms provided in the bye-laws shall be such as may
be laid down by the Reserve Bank from time to time.
(3) The application for registration shall be disposed of by the Central Registrar within a period of
three months from the date of receipt of such application by him:
Provided that the Central Registrar may, for rectification of mistakes, if any, in the application, extend
the period of three months with such further period, for reasons to be recorded in writing, not exceeding
two months on the request of the applicant.
(4) Where the Central Registrar refuses to register a multi-State co-operative society, he shall
communicate the order of such refusal stating therein the reasons for such refusal, to the applicant within
the period specified in sub-section (3):
Provided that no order of refusal shall be made, unless the applicant has been given an opportunity of
being heard:
Provided further that if the application for registration is not disposed of within the period specified in
sub-section (3) or the Central Registrar fails to communicate the order of refusal within the said period,
the application shall be deemed to have been accepted for registration and the Central Registrar shall issue
the registration certificate in accordance with the provisions of this Act and the rules made thereunder.]
8. Registration certificate.—Where a multi-State co-operative society is registered under this Act,
the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive
evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the
registration of the society has been cancelled.
9. Multi-State co-operative society to be body corporate.—(1) The registration of a multi-State
co-operative society shall render it a body corporate by the name under which it is registered having
perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both
movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to
do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be
sued.
(2) All transactions entered into in good faith prior to the registration of a multi-State co-operative
society shall be deemed to be its transactions after registration for furtherance of the objects of its
registration.
1. Subs. by Act 11 of 2023, s. 3, for sub-section (2) and (3) (w.e.f. 3-8-2023).
10
10. Bye-laws of multi-State co-operative societies.—(1) Every multi-State co-operative society may
make its bye-laws consistent with the provisions of this Act and the rules made thereunder.
(2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may
provide for all or any of the following matters, namely:—
(a) the name, 1
[address, including e-mail address] and area of operation of the society;
(b) the objects of the society;
(c) the services to be provided to its members;
(d) the eligibility for obtaining membership;
(e) the procedure for obtaining membership;
(f) the conditions for continuing as member;
(g) the procedure for withdrawal of membership;
(h) the transfer of membership;
(i) the procedure for expulsion from membership;
(j) the rights and duties of the members;
(k) the nature and amount of capital of the society;
(l) the manner in which the maximum capital to which a single member can subscribe;
(m) the sources from which the funds may be raised by the multi-State co-operative society;
(n) the purpose for which the funds may be applied;
(o) the manner of allocation or disbursement of net profits of the multi-State co-operative society;
(p) the constitution of various reserves;
(q) the manner of convening general meetings and quorum thereof other than those provided
under this Act;
(r) the procedure for notice and manner of voting, in general and other meetings;
(s) the procedure for amending the bye-laws;
(t) the number of members of the board not exceeding twenty-one;
(u) the tenure, of directors, chairperson and other office bearers of the society, not exceeding five
years;
(v) the procedure for removal of members of the board and for filling up of vacancies;
(w) the manner of convening board meetings, its quorum, number of such meetings in a year and
venue of such meetings;
(x) the frequency of board meetings;
(y) the powers and functions of the Chief Executive in addition to those provided under
section 52;
(z) the manner of imposing the penalty;
(za) the appointment, rights and duties of auditors and procedure for conduct of audit;
(zb) the authorisation of officers to sign documents and to institute and defend suits and other
legal proceedings on behalf of the society;
(zc) the terms on which a multi-State co-operative society may deal with persons other than
members;
(zd) the terms on which a multi-State co-operative society may associate with other co-operative
societies;
1. Sub. by Act 11 of 2023, s. 4, for “address” (w.e.f. 3-8-2023).
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(ze) the terms on which a multi-State co-operative society may deal with organisation other than
co-operative societies;
(zf) the rights, if any, which the multi-State co-operative society may confer on any other
multi-State co-operative society or federal co-operative and the circumstances under which such
rights may be exercised by the federal co-operative;
(zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case
of death of a member;
(zh) the educational and training programmes to be conducted by the multi-State co-operative
society;
(zi) the principal place and other places of business of multi-State co-operative society;
(zj) the minimum level of services, to be used by its members;
(zk) any other matter which may be prescribed.
11. Amendment of bye-laws of a multi-State co-operative society.—(1) No amendment of any
bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered
under this Act.
(2) The amendment to the bye-laws of a multi-State co-operative society shall be made by a
resolution passed by a two-third majority of the members present and voting at general meeting of the
society.
(3) No such resolution shall be valid unless fifteen clear days’ notice of the proposed amendment has
been given to the members.
(4) In every case in which a multi-State co-operative society proposes to amend its bye-laws, an
application to register such amendments shall be made to the Central Registrar together with—
(a) a copy of the resolution referred to in sub-section (2);
(b) a statement containing the particulars indicating—
(i) the date of the general meeting at which the amendments to the bye-laws were made;
(ii) the number of days’ notice given to convene the general meeting;
(iii) the total number of members of the multi-State co-operative society;
(iv) the quorum required for such meeting;
(v) the number of members present at the meeting;
(vi) the number of members who voted in such meeting;
(vii) the number of members who voted in favour of such amendments to bye-laws;
(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together
with reasons justifying such amendments;
(d) four copies of the text of the bye-laws incorporating therein the proposed amendments signed
by the officer duly authorised in this behalf by the general body;
(e) a copy of the notice given to the members and the proposal to amend the bye-laws;
(f) a certificate signed by the person who presided at the general meeting certifying that the
procedure specified in sub-sections (2) and (3) and the bye-laws had been followed;
(g) any other particular which may be required by the Central Registrar in this behalf.
(5) Every such application shall be made within sixty days from the date of the general meeting at
which such amendment to the bye-laws was passed.
(6) The procedure given in sub-sections (2) to (5) of this section shall apply to the amendment of the
bye-laws of a co-operative society desiring to convert itself into a multi-State co-operative society as per
the provisions of section 22.
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(7) If, on receipt of application under sub-section (5), the Central Registrar is satisfied that the
proposed amendment—
(a) is not contrary to the provisions of this Act or of the rules;
(b) does not conflict with co-operative principles; and
(c) will promote the economic interests of the members of the multi-State co-operative society,
he may register the amendment within a period of three months from the date of receipt thereof by him.
(8) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered
amendment together with a certificate signed by him within a period of one month from the date of
registration thereof and such certificate shall be conclusive evidence that the amendment has been duly
registered.
(9) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State
co-operative society, he shall communicate the order of refusal together with the reasons therefore to the
Chief Executive of the society in the manner prescribed within fifteen days from the date of such refusal:
Provided that if the application for registration is not disposed of within a period of three months
specified in sub-section (7) or the Central Registrar fails to communicate the order of refusal within that
period, the application shall be deemed to have been accepted for registration and the Central Registrar
shall issue registration certificate in accordance with the provisions of this Act.
12. When amendment of bye-laws comes into force.—An amendment of the bye-laws of a
multi-State co-operative society shall, unless it is expressed to come into operation on a particular day,
come into force on the day on which it is registered.
13. Change of name.—(1) A multi-State co-operative society may, by an amendment of its bye-laws,
change its name but such change shall not affect any right or obligation of the multi-State co-operative
society or of any of its members or past members, and any legal proceedings which might have been
continued or commenced by or against the multi-State co-operative society by its former name, may be
continued or commenced by or against its new name.
(2) Where a multi-State co-operative society changes its name, the Central Registrar shall enter the
new name on the register of multi-State co-operative society in place of the former name and shall amend
the certificate of registration accordingly.
14. 1
[Address].—Every multi-State co-operative society shall have principal place of business and an
2
[address, including e-mail address] registered in the manner prescribed to which all notices and
communications may be sent.
15. Publication of name by multi-State co-operative society.—Every multi-State co-operative
society—
(a) shall paint or affix its name and the address of its registered office and keep the same painted
or affixed, on the outside of every office or place in which its business is carried on, in conspicuous
position, in letters easily legible; and if the characters employed therefore are not those of the
language, or of one of the languages in general use in that locality, also in the characters of that
language or of one of those languages;
(b) shall have its name engraven in legible characters on its seal; and
(c) shall have its name and the address of its registered office mentioned in legible characters in
all its business letters, in all its bill heads and letter paper, and in all its notices and other official
publications; and also have its name so mentioned in all bills of exchange, hundies, promissory notes,
endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the
multi-State co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of
the multi-State co-operative society.
16. Liability.—(1) No multi-State co-operative society with unlimited liability shall be registered
after the commencement of this Act:
1. Subs. by Act 11 of 2023, s. 5, for “Change of address” (w.e.f. 3-8-2023).
2. Subs. by s. 5, ibid., for “address” (w.e.f. 3-8-2023).
13
Provided that where a multi-State co-operative society with unlimited liability was functioning before
the commencement of this Act, such a society shall exercise the option within a period of one year from
such commencement either to continue to function as such or to convert itself into a multi-State
co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4).
(2) Subject to the provisions of this Act and the rules, a multi-State co-operative society may, by an
amendment of its bye-laws, change the extent of its liability.
(3) When a multi-State co-operative society has passed a resolution to change the extent of its
liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding
anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the
period of one month from the date of service of the notice upon him, have the option of withdrawing his
shares, deposits or loans, as the case may be.
(4) Any member or creditor who does not exercise his option within the period specified in
sub-section (3) shall be deemed to have assented to the change.
(5) An amendment of a bye-law of a multi-State co-operative society changing the extent of its
liability shall not be registered or shall not take effect until either—
(a) the assent thereto of all members and creditors has been obtained; or
(b) all claims of members and creditors who exercise the option referred to in sub-section (3)
within the period specified therein have been met in full or otherwise satisfied.
17. Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative
societies.—(1) A multi-State co-operative society may, by a resolution passed by a majority of not less
than two-thirds of the members, present and voting at a general meeting of the society held for the
purpose,—
(a) transfer its assets and liabilities in whole or in part to any other multi-State co-operative
society or co-operative society;
(b) divide itself into two or more multi-State co-operative societies;
(c) divide itself into two or more co-operative societies.
(2) Any two or more multi-State co-operative societies may, by are solution passed by a majority of
not less than two-thirds of the members present and voting at a general meeting of each such society,
amalgamate themselves and form a new multi-State co-operative society.
(3) The resolution of a multi-State co-operative society under sub-section (1) or sub-section (2) shall
contain all particulars of the transfer or division or amalgamation, as the case may be.
(4) When a multi-State co-operative society has passed a resolution under sub-section (1) or
sub-section (2), it shall give notice thereof in writing to all the members and creditors, and,
notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor
shall, during the period of one month of the date of service of the notice upon him, have the option of
withdrawing his share, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in
sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a multi-State co-operative society under this section shall not take
effect until the assent thereto of all the members and creditors has been obtained.
(b) The multi-State co-operative society shall make arrangements for meeting in full or otherwise
satisfying all claims of the members and creditors who exercise the option within the period specified in
sub-section (4).
(7) On receipt of an application for the registration of new societies formed by division in accordance
with the resolution passed under sub-section (1) or of a new society formed by amalgamation in
accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that
the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in
writing he thinks fit to refuse so to do, Register the new society or societies, as the case may be, and the
bye-laws thereof.
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(8) On the issue of an order under sub-section (7), the provisions of section 21 shall, so far as may be,
apply to the multi-State co-operative society so divided or the multi-State co-operative societies so
amalgamated.
(9) Where a resolution passed by a multi-State co-operative society under this section involves the
transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other
law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the
transferee without any further assurance.
1
[(10) Any co-operative society may, by a resolution passed by majority of not less than two-thirds of
the members present and voting at a general meeting of such society, decide to merge into an existing
multi-State co-operative society:
Provided that such resolution shall be subject to the provisions of the respective State Co-operative
Societies Act for the time being in force under which such co-operative society is registered.]
18. Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative
bank in certain cases.—When an order of moratorium has been made by the Central Government under
sub-section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949) in respect of a
co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may,
during the period of moratorium, prepare a scheme—
(a) for the amalgamation of the co-operative bank with any other co-operative bank; or
(b) for the reorganisation of the co-operative bank.
19. Promotion of subsidiary institution.—(1) Any multi-State co-operative society may, by a
resolution passed at general meeting by a majority of members present and voting, promote one or more
subsidiary institutions, which may be registered under any law for the time being in force, for the
furtherance of its stated objects.
(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body
of the multi-State co-operative society deems its existence necessary:
Provided that a multi-State co-operative society while promoting such a subsidiary institution, shall
not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated
objects.
Explanation.—For the purposes of this section,—
(a) an institution shall be deemed to be a subsidiary institution if the multi-State co-operative
society—
(i) controls the management or board of directors or members of governing body of such
institution; or
(ii) holds more than half in nominal value of equity shares of such institutions; 2***
3* * * * *
(b) a subsidiary institution shall not include a partnership firm.
(3) The annual reports and accounts of any such subsidiary institution shall be placed each year
before general meeting of the promoting multi-State co-operative society.
20. Liability of a co-operative bank to deposit insurance and credit guarantee corporation.—
Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative
bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee
Corporation Act,1961 (47 of 1961), is amalgamated or reorganised and the Deposit Insurance Corporation
has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that
Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after
such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an
1. Ins. by Act 11 of 2023, s. 6 (w.e.f. 3-8-2023).
2. The word “or” omitted by s. 7, ibid. (w.e.f. 3-8-2023).
3. Sub-clause (iii) omitted by s. 7 ibid. (w.e.f. 3-8-2023).
15
obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the
manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
21. Cancellation of registration certificate of multi-State co-operative societies in certain
cases.—(1) Where the whole of the assets and liabilities of a multi-State co-operative society are
transferred to another multi-State co-operative society or to a co-operative society in accordance with the
provisions of section 17, the registration of the first mentioned multi-State co-operative society shall stand
cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate
body.
(2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State
co-operative society in accordance with the provisions of section 17, the registration of each of the
amalgamating societies shall stand cancelled on the registration of the new society, and each of the
amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate
body.
(3) Where a multi-State co-operative society divides itself into two or more multi-State co-operative
societies or two or more co-operative societies in accordance with the provisions of section 17, the
registration of that society shall stand cancelled on the registration of the new societies and that society
shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State co-operative societies shall not in any manner
whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or
render defective any legal proceedings by or against the multi-State co-operative society or societies, and
any legal proceedings that might have been continued or commenced by or against the multistate
co-operative society or societies, as the case may be, before the amalgamation or division, may be
continued or commenced by or against the resulting multi-State co-operative society or societies.
22. Conversion of a co-operative society into a multi-State co-operative society.—(1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a
multi-State co-operative society:
Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has
been registered by the Central Registrar.
(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in
accordance with the provisions contained in sub-section (4) of section 11.
(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States
concerned, has satisfied himself that such amendment—
(i) fulfils the requirements of the members being from more than one State;
(ii) is in accordance with the provisions contained in sub-section (4) of section 11,
he may register the amendment within a period of six months from the date of receipt thereof by him:
Provided that no co-operative society shall be deemed to have been converted into a multi-State
co-operative society on any ground whatsoever unless such society is registered as a multi-State
co-operative society.
(3) The Central Registrar shall forward to the co-operative society a copy of the registered
amendment together with a certificate signed by him and such certificate shall be conclusive evidence that
the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a co-operative
society, he shall communicate the order of refusal together with the reasons therefore to the society in the
manner prescribed within seven days from the date of refusal.
(5)(a) Once the amendment of bye-laws has been registered by the Central Registrar, the co-operative
society shall, as from the date of registration of amendment, become a multi-State co-operative society.
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(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the
effect that such society has been registered as a multi-State co-operative society under this Act and also
forward a copy of the same to the Registrar of Co-operative Societies of the State concerned.
1
[(c) the co-operative society shall be deemed to have been de-registered under the law relating to
such co-operative society for the time being in force in that State, from the date of the certificate as issued
by the Central Registrar and forwarded to such co-operative society, along with a copy of the registered
amendment under sub-section (3).]