Notifications/Orders under the provisions of Goa Co-operative Society Act, 2001 (Act 36 of 2001)

circulars · 2001 · Goa

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Parent: The Goa Co-operative Societies Act, 2001 (28327f05579bd9468af16e4464bea6b5ea85fa92)

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Notifications/Orders under the provisions of Goa Co-operative Society Act, 2001 (Act 36 of 2001) 15 DEPARTMENT OF CO -OPERATION OFFICE OF THE REGISTRAR OF CO -OPERATIVESOCIETIES GOVERNMENT OF GOA "SAHAKAR SANKUL" 4 th & 5 th FLOOR EDC COMPLEX, PATTO PANAJI GOA-403001 No. 1 -I -99 -TS -VPK -RCS/Vol.III/2275 CIRCULAR It is observed from the Inquiry reports that the management/Board of Directors of various UrbanCo -operative Credit Societies, PACs (Having Credit Counters) Multipurpose Cooperative CreditSocietiesfunctioning in the State of Goa are not following proper identification procedure for opening of accounts. Some of the Cooperative Societies have accepted deposits of hard cash in crores without following any KYC norms and other required documents which leads to difficulty in monitoring the transactions of suspicious nature. Similarly, it has also been observedthat membership and nomination records as required under the provisions of Act/Rules& Byelaws of the societies are either remains incomplete or not updated since inception. The incomplete membership. In the light of above problems and on examining various records may also create problems for display of provisional/final list of voters at the time of election complaints/allegations made by the membersand public in general all the Co-operative Credit societies have been advised to follow certain customer member identification guidelines for opening of accounts and maintain the membership records in more scientific manner and therefore decided to issue following guidelines under section 69 of the Goa Cooperative Societies Act, 2001 on know Your Customer (KYC): 1. For opening accounts of individuals/member, the Cooperative Societies, shall obtain one certifiedcopy of an officially valid documents i.e. copy of elec

Rule TOC

1 · For opening accounts of individuals/member, the Cooperative Societies, shall obtain one certifiedcopy of an officially valid documents i.e. copy of election Card Aadhar Card, Passport and Pan Account Number etc.

2 · Similarly for any change in address mentioned as per the proof of address, under goes a change fresh documents on proof of address is to be obtained from individuals within a period of six months. However, Cooperative societies are not required to obtain fresh documents of members/Customers for transferring their account from one branch of the society to another branchof the same cooperative society.

3 · The accounts of suspicious in nature which involves huge chunk of deposits from the resident member/residents outside India, State of Goa, etc the Cooperative Societies shall verify the identityof the person and seek information as per the Income Tax guidelines while accepting amount beyond the prescribed limits/ ceiling prescribed by the Authorities concerned.

4 · Accounts of persons other than individuals/members where the customer is a Company/Firm, onecertified copy each of the following documents identification (a) Certificate of incorporation (b) Memorandum and Articles of Association (c) A resolution from Board of Directors and power of attorney granted to its managers/officers/employees to transact on its behalf. An officially valid document in respect of managers/officers or employees holding an attorney to transact on its behalfproprietary concern in addition to Pan Card. Election Card, Identity proof, the individuals has to submit only two documents i.e.Registration Certificate of practice issued in the name of theproprietary concern.

5 · KYC exercise shall be reviewed periodically in order to confirm the identity and address and otherparticulars.

6 · The Cooperative societies may not seek freshproofs of identity and address atthe time of periodic updating from the individuals in case there is no change in statuswith respect to identities and address. A selffcertification or declaration by a customer to that effect should be obtained in suchcases.

7 · The management of the Cooperative Institutions dealing with credit transactions shall take necessary steps to comply with aforesaid directions with immediate effect.

81 · every cooperative society shall file returns within six months of the close of every year. The above mentioned provisions of the Act have already been brought to their notice of all cooperative societies functioning in the state of Goa by issuing the Circulars press note etc. from time to time.

1 · Incase where the societies/Banks having more than 5 employees and the new posts areto be created on regular basis in the society on account of necessity arisen due to increase in business turnover and the work -load, the same should be assessed by the "Staff Assessment and Selection Committee constituted by the Board of the respective society consisting of three members namely, Chairman, Chief Executive/Manager of the respective society and the representative of the Registrar.The said committee shall submit a detailed report about the creation of additional posts and after considering such report the Board of Directors may create required number of posts and the necessary action shall be taken by the management two fill the said posts by obtaining prior approval of the Registrar.

2 · Recruitment Rules shall be framed by the society and got approval from the Registrar and vacant or new post shall be filled up as per the criteria fixed by the Board of Directors for the time being based on the seniority list of the existing employees available with the society and also considering the recommendation of the aforesaid " Staff Assessment and Selection Committee" by way of direct recruitment or promotions. However, the societies shall frame Recruitment Rules within a period of six months from the date of issue of the directives. For filling up the posts by direct recruitment, the instructions of the Government asregards notifying the vacancies to the Regional Employment Exchange shall invariably be followed. Also, applications should be invited from the candidates for direct recruitment by advertising at least on two dailies.

3 · The management shall ensure that every society having more than five employees establish for its employees a provident fund into which shall be paid the contribution made by its employees and by the society. Such provident fund shall not be used in the business of the society but shall be invested separately under the provisions of Act.

5 · It shall be mandatory on the part of all the Cooperative Societies to obtain prior approval of

6 · The Management shall ensure that before making purchases, the codal procedure of inviting quotations and other related procedure are followed as per the existing Rules and as per the procedure followed by the Govt. of Goa.

7 · The management shall ensure that the Account of the Societies are got audited/returns filed/AGM convened/Election held within the stipulated time as provided under the provisionof the Act, so as to safeguard the interest of the share holders in particular and the society to that effect.

8 · The Management shale ensure that the Investment od funds in purchase of immovable property is done only after approval of the Registrar and in a accordance with the guidelines issued to that effect.

3 · This office circular of even no. dated 22 nd December, 2000.

1 · The Management of the Society shall ensure that at no cost sanctioning of big loan bea burden on a family of a loanee member.

2 · While sanctioning loan to a member the Management of the Society shall ensure that at no point of time home take salary contribution be less than 1/3 of the total emolument.

3 · The management shall also take into consideration the length/quantum of service at the disposal of the member while sanctioning the loan.

4 · The management should also ensure that all big loans beyond Rs. 1,00,000/are sanctioned mainly for the purpose of acquiring either immovable properties or valuable assetspurpose wise.

5 · The management of the society shall also take into consideration the provision of civil conduct service Rules (CCS Rules) scrupulously.

6 · Although the bye-laws of the society provides loan facility on the basis of gross salary, proper assessment of the loanee shall be made as regards to his/her credit, worthiness, repayingcapacity by taking into account net salary and net worth etc.

7 · All loans over and above the limits of Rs. 1,00,000/ -shall be secured by means of

8 · Loans shall be sanctioned to a member purely on the strength of his/her repayment capacity only and marketable securities offered by him/her and not on the strength of salary certificate of securities alone.

9 · The proposals for enhancement of loan over and above Rs. 5,00,000/shall invariablysubmitted to the Registrar for administrative approval.

2 · Circular No. 41/86/TS dated 7/11/1991.

3 · Circular No. 41/86/TS dated 1/10/1993.