Chptr-14.Insured Co-operative Banks

SECTION 74 A 

CHARACTERISTIC FEATURE OF INSURED CO-OPERATIVE BANKS  

 According to section 74 A,an insured co-operative bank means a society which has been affiliated with the deposit insurance and credit guarantee corporation.

The provision of banking regulation act 1949 was made applicable to state co-operative bank. district co-operative bank and co-operative urban bank. the co-operative bank are coming under the banking regulation act are eligible to get their deposit insured
under the provision of deposit insurance co-operative act of 1961. Thus RBI advised the power on the matters such as regulation and advance, maintenance of cash reserve,
winding up, supervision of management etc. Accordingly Kerala government inserted section 74 A by amending the act in 1974 so as to avail the facilities of insurance cover to the deposits of co-operative banks as in the case of commercial banks.

Section 74 A provides the following 

1. An order to winding up or at sanctioning of amalgamation, transfer of asset or
   division shall be made only with previous written sanction of the RBI 

2. An order for winding up of the bank shall be made by the registrar if so
    required by the RBI on the circumstance referred to in section 13 D of
    deposit insurance corporation act 1961 

3. The registrar may super cede the committee if so required by the RBI

4. An order to winding up, amalgamation, transferee of assets, division and
    supervision can not be questioned in any manner other than by appeal review or revision 

5. The liquidator or insured co-operative bank or transferee bank as the
    case may be, shall be under an obligation to repay the DIC to the extent
    and in the manner referred to in it  

   For the purpose of this  section a co-operative bank means a bank as has been defined in the deposit insurance corporation act 1961. Insured co-operative bank under the provision of deposit insurance corporation act of 1961