A society resistered under Society Registration Act needs to open a Current account with bank or a saving bank account ?
Sanjay Kumar Singh (Advocate / Legal Professional ) 02 October 2009
A society resistered under Society Registration Act need to open a Current account only with any bank. Any Society/ firm can not open the saving account. regards
A society resistered under Society Registration Act need to open a Current account only with any bank. Any Society/ firm can not open the saving account.
Hemant Agarwal (email@example.com Mumbai : 9820174108) 02 October 2009
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
Saurabh.S.S (Lawyer (Alld. H.C) Lucknow Bench) 02 October 2009
Hi all Mr. Hemant's reply is just. I also have a soceity running. Its the savings. Now If yoyu have a PAN card, which is mandatory, u can also invest in the mutual funds.
Jeevesh Mehta (Advocate ) 02 October 2009
dear Mr Hemant,\
i think ur talking about Cooperative Housing Society. But I am Talking about normal Welfare Society under Society registration Act ..... as an NGO...
G.L.V.Ramana Murthy (Advocate) 03 October 2009
Dear friend, there is a differene between cooperative society and a society registered under the societies registration act. Society regisered under the societies registration act is no profit oriented organisation. it is also having duty to submit incometax accounts and can obtain exemption under sections 12 and 13 of I.T Act. so the society can open a current account in any nationalised bank. there is no prohibition to a society to open a savings account also because for regular transactions savings
account can also be opened.
Ramana Murthy. G.L.V
Anonymous1 (N/A) 06 October 2017
https://www.rbi.org.in/scriptts/NotificationUser.aspx?Id=9839&Mode=0 section 18.2 makes it clear that primary cooperative banks cannot open savings accounts for housing cooperative societies but can open them for societies registered under the Societies Registration Act, 1860, or any other corresponding law in force in a State or a Union Territory.