1. A cooperative housing society (CHS) is a non-profit organisation (entity) and a non-commercial establishment. A CHS is not doing any non-member business, hence its activities are not commercial in nature.
2. Only a commercial establishment can open a "Current A/c", AND the current a/c, has no provision to pay Interest under the Banking Act or the RBI Act.
3. Therefore the CHS can open account for its daily operations ONLY & ONLY in an "Savings Account" and not otherwise. AND the savings account will receive mandatory Interest, as directed by RBI notifications.
4. IF, it is a "Coop CREDIT Society", (i.e. a non-CHS) only then the society can open its account in a "Current a/c". A Coop Credit Society, is a business enterprises and needs to be registered under Income Tax, Sales Tax, Excise, Service Tax, Profession Tax, Shop & Establishment Act, as required.
5. For its fixed deposits, a CHS has to maintain its FD's in a schedule Distrcit Coop Bank only.
Keep Smiling .... Hemant Agarwal