Registration of the Bank
The Bank was registered under Section 09 of Gujarat State Co-operative Societies Act, 1961, by the Registrar of Co-operative Societies, Gandhinagar on 18th December, 1995 at Sr. No. SA-2946. Reserve Bank of India awarded licence on 24th January, 1996 under Sr. No. Guj 1210.
The Bank commenced its business with paid-up share capital of Rs.39.45 lakh out of the authorized capital of Rs.100 lakh and 2260 members. The position as on 15/03/2016 is Rs.158.01 lakh paid-up share capital (a rise by 25%) and 4422 members (a rise by 51%)
Funds may be raised through the following avenues:
- Entrance Fee;
- Loans, Cash Credits, Overdrafts and Advances from financial institutions with or without securities;
- Donations, Grants and Subsidies, and
Maximum Borrowing Capacity
The maximum borrowing capacity of the Bank shall be not exceeding 25 times the paid-up share capital plus reserve fund plus building fund minus accumulated losses.
Investment of fund and any surplus money not engaged in the business shall be invested as provided in section 71 and Rule 29 of the Gujarat Co-operative Societies Act, 1961, with permission of the Registrar.
Membership will Cease
- On death, of the individual, or dissolution or liquidation in case of firm, or company or other corporate body;
- On being adjudged as insolvent or legally disabled from continuing as a member;
- On breach of any conditions prescribed under Bank’s Bye laws;
- On transfer of all the shares;
- On resignation or withdrawal of membership having been accepted, and
On expulsion as provided in section 36 of the Gujarat Co-operative Societies Act 1961 and rule made there under for acts which are detrimental to the proper working of the Bank.
- Each member shall have one vote irrespective of the number of shares held.
- Individual members shall vote in person, while a firm or company or any other body corporate constituted under any law for the time being in force, or Government which is a share-holder (member) may appoint one of its partners, directors or officers to participate in the meeting and to exercise the right of vote;
- The Chairman presiding over the meeting shall have a casting vote, in case there is equality of votes for and against a resolution, and
- Defaulters and the guarantors to the defaulters in loans availed with the Bank are not eligible for voting right.
The Bank was fully computerizing from day one. In order to provide quick and efficient services to customers in clearing their instruments, it become sub-member of Vysya Bank Ltd. The Current deposits and Saving deposits short up tremendously within less than the next less than two months and a great numbers of current accounts grew up very fast. In consideration of this phenomenon, Surat Bankers’ Clearing House offered us direct membership out of turn when other older banks were skill in the waiting list; this is, indeed, a commendable accomplishment.
Loans and Advances
Loans, cash credits and/or overdrafts on current accounts may be granted to members on security or securities mentioned below or other security or securities approved by the Board of Directors or without security subject to the directives issued by the Reserve Bank of India from time to time relating to loans and advances of the Bank.
- Personal security and/or surety/sureties of the Bank’s other member/members;
- Collateral security of movable or immovable property;
- Industrial, mercantile, agricultural and other marketable commodities or machinery under pledge, hypothecation or charge of the Bank;
- Pledge of Government, trustee securities, shares of approved companies, debentures and fixed deposits with the Bank;
- Life insurance policies assigned to the Bank within the surrender values;
- Warehouse receipts;
- Gold and silver ornaments; or
- Any other tangible security/is acceptable to the Bank;
- The Board may frame detailed loan regulations prescribing proportions of unsecured and secured loans and advances to total loans and advances, proper terms and conditions and the nature of securities acceptable for sanctioning of loans and advances for different purposes.
Short-term loans will be for a period upto 15 months; medium-term, for 15 months to 60 months and long term loans over 60 months.