We run a cooperative situated in a rural block –Chandankiary, in the Bokaro district of Jharkhand state. This name of our organization is “Chetna SHG Mahila Swabalambi Sahkari Samiti LTD” and it is registered under Jharkhand Mutually Aided Cooperative Societies Act 1996. As the name itself suggests this is actually a federation of nearly 400 women’s SHGs. All the members of each SHG are share holders of this cooperative. They deposit their savings here and take loans as and when necessary. We don’t collect deposit from non share holders and we don’t give loans to outsiders.
Now my question to you is: Do we come under “The Micro Finance (Development & Regulation ) Act 2012”? Do we need to register the cooperative with RBI?
The office of one Sahkar Bharti affiliated cooperative credit society in Jamshedpur has been raided recently by police apparently because it was not registered under the above mentioned Act. There are many such cooperatives who don’t know the exact rules and hence are being harassed.
We would be very obliged if you can inform us about the exact legal positions of the rural cooperatives vis- a- vis the RBI rules.
I C Naik
Micro Finance Bill 2012 was introduced by UPA and is now defunct because Parliament has been reconstituted.
It is in news to day; Read
The finance ministry plans to club the long-pending bill for regulation of micro-finance institutions with that of the MUDRA Bank