Betul Kshetriya Credit Co-operative Society is a Multi-State Co-operative Society which is registered with Ministry of Agriculture, Department of Co-operation under Multi State Credit Co-Operative Societies Act 2002. by the Office of the Central Registrar of Co-operative Societies, New Delhi by Registration. No. : MSCS/CR/646/2012. Betul Kshetriya Credit Co-operative Society strictly abides by the Multi State Credit Co-Operative Societies Act., 2002.
The Society uses the funds in lending to the members and investments as per the societies act/rules/by-laws. Our lending is in the shape of small loans for business, Micro Finance and other co-operative institutions.
Yes, because Government of India has framed the laws/rules to ensure the security and safety of deposits and Betul Kshetriya Credit Co-operative Society strictly abides by the rules and regulations framed by Central Government. There are various provisions under the Multi State Credit Co-Operative Societies Act., 2002.
Section 66 Restriction on loans: A Multi-State co-operative society, other than a co-operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.
Section 67 Restriction on borrowing: A multi-State co-operative society may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws: Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves: Provided further that while calculating the total sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted. We are happy that Betul Kshetriya Credit Co-operative Society strictly abides by the rules and regulations framed by Central Government.
Betul Kshetriya Credit Co-operative Society Ltd. is registered under Multi state Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by Board of Directors who are elected by the members of the society in the Annual General Meetings and the Board of Directors also takes decisions in a collective manner with total transparency. The department of Co-Operatives constantly reviews the functioning of the society at regular intervals. Finance companies are usually owned by individuals and frame the policies according to choice of the owners to maximize returns. The general members/ depositors/ Investors have no role to play. There are some possibilities for the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs/other financial institutions and the statutory liabilities of the institutions are also limited. Betul Kshetriya Credit Co-operative Society Ltd. completely lives to its legal liabilities and answerable to its members through its elected members of the Board of Directors. Books of accounts of Betul Kshetriya Credit Co-operative Society subject matter of Statutory Audit and the Audited Accounts are submitted to government of India for review and further action, at regular intervals during a year. When you invest your money in Betul Kshetriya Credit Co-operative Society you are not only an investor you are a member and family of the society.
The main aim of the society is to work towards promoting tendency of savings. In the present scenario when people tend towards a€?EARN AND BURNa€?, it is very important to have tendency of savings for developing self sufficiency in finance at individual and social level as well. The society is working in this direction with a feeling that it our social responsibility. To motivate maximum number of people for savings, the society has fixed higher rate of interest on deposits and investors are able to get good profit.
One percent additional interest is payable to; investors more than 50 years of age, woman, handicapped, defense personnel, retired defense personnel, employees of central government and state government, employees of all banks and insurance field, employees of public undertakings, employees of government and semi government establishments, working employees of any Co-operative Society, employees of local bodies, retired person, trust and single deposit of Rs. 5 lac. As per present rules of Income Tax, TDS is not being cut on the profits earned on deposits. Within the rules, accidental insurance of Rs. 50,000/- on all accounts is being offered free of cost (Provided the Profits should not exceed Rs 1 Lac and maximum 2 A/ca€?s shall come under this benefit scheme). We have also provided our employee/members with the benefit of free accidental insurance facility.
Interest of Commercial banks/ Financial Institutions?
There are varieties reasons which help the society in offering better Rate of Interest. A few of them are listed below:-
Income earned by the society on account of Interest on loans/ advances granted to members which contributes a major part of societya€?s Income is exempt from Income Tax as per section 80P of Income Tax Act. Therefore the society is able to save some amount which could have otherwise been paid as Tax. The founders of the society felt that some portion of this should be passed on to the members by offering higher Rate of Interest and this is our Cooperate Philosophy.
C.R.R. Cash Reserve Ratio: a€“ Banks and other financial institutions have to keep about 6% of their deposits in cash or with Reserve Bank of India as per R.B.I. regulations. Amount so kept does not earn any interest and reduces the banksa€? capacity of lending. While Betul Kshetriya Credit Co-operative Society is exempted from this provision we keep minimum cash in hand to meet the day to day requirements and therefore are in a position to lend more and thus earn more and pass the share to the member account holders as high rate of interests.
S.L.R. Statutory Liquidity Ratio :- Banks have to keep the almost 24% of their deposits in different type of securities which earn them less interest as compared to the Rate of Interest prevailing in the market thus reduced earnings compared to society.
Betul Kshetriya Credit Co-operative Society is exempt from maintaining Cash Reserve Ratio (C.R.R.) & Statutory Liquidity Ratio (S.L.R). Betul Kshetriya Credit Co-operative Society has better opportunities of managing its funds and earning interest thereon which it is doing sincerely and passing on the benefits of such income to its members/ Investors by offering better rate of Interest.
The Society is extending short term & medium term loans to its members. Our loans are fully secured and our recovery is hundred percent. We have no N.P.Aa€?s in our books. On the other hand Banksa€? resources are adversely affected by large scale Non Performing Assets and as a result these institutions have lesser funds at their disposal and are not able to offer good Rate of Interest to depositors.
Banks and other financial institutions are spending huge amounts in the shape of capital expenditures and establishment cost. As compared to banks and N.B.F.Csa€? our operational cost is very low and the benefit of this also is being passed on to the members.
All those interested for good returns on their short, medium and long term deposits can invest with us in different schemes.
All those interested for good returns on their short, medium and long term deposits can invest with us in different schemes.
Betul Kshetriya Credit Co-operative Society is the First Government Undertaking in Madhya Pradesh which has been working under the Benchmarks of ISO 9001:2008.
Betul KCCS is committed for Zero NPA (Non Performing Asset)with an aim of 100% recovery target.
Betul KCCS is also committed for Zero Percent Complaint Free with an aim of 100% Customer Satisfaction.
