• a. After conversion institution will able to accepts
• b. After conversion institutions will able to draw cheques, DD.
• c. Deposit Insurance and Credit Assurance Company Insurance Service

• ➲ Minimum paid-up capital for a new bank is Rs.200 Crore. The initial capital is increased to Rs.300 crore within three years of the start of business.
• ➲ The total contribution of
• ➲ Full-fledged money changer (FFMC) offers sales facilities of foreign exchange
• ➲ The initial money, other than the contribution of the promoters, can be provided by way of public or private placements.
• ➲ While capital grows to Rs.300 crore within three years of company start-up, promoters would have to collect additional money, which will amount to at least 40 percent of the fresh money generated.
• ➲ The capital shall be locked in for a term of at least 5 years from the date of receipt of capital by the bank.
• ➲ A industrial house will not be funded to the new bank. Nevertheless, individual companies that are directly or indirectly connected to large industrial houses can be allowed to invest in the equity of a new private sector bank up to a limit of 10 percent that would not have managed interest in the bank.
• ➲ The proposed bank shall maintain an arm's length relationship with the promoter group's business entities and the individual company / is investing up to 10 percent of the shareholdings as provided for.
• ➲ The relationship between the promoter group's business entities and the proposed bank shall be like that between two separate and unconnected entities.
• ➲ The bank shall maintain on a continuous basis a minimum capital adequacy ratio of 10 percent.
• ➲ As applicable to other domestic banks, the new bank would have to experience a priority sector lending target of 40% of net bank credit.
• ➲ The new bank would be expected to open 25 percent of its rural and semi-urban branches.
• ➲ The formation of a subsidiary or mutual fund shall not be allowed by the new bank for at least three years from the start of the company.
• ➲ The proposed new bank's headquarters could be at any place in India, as the promoters have agreed.
• ➲ The new bank shall be regulated by the provisions of the Banking Regulation Act, 1949, Reserve Bank of India Act, 1934, other relevant statutes and SEBI regulations on public matters and other guidelines relevant to the banks listed.

• ➲ The report is completed and filed in the required manner.
• ➲ The applications shall be followed by a project report covering the proposed bank's market potential and feasibility, market emphasis, product lines, technology capabilities, and other relevant details.
• ➲ Detailed information on the history of promoters, their experience, the business and financial value track record, details of the direct and indirect interests of promoters in various companies/industries, details of the proposed participation by foreign banks / NRI / OCB shall be given.
• ➲ Licenses will be given on a selective basis to those who comply with RBI's specified criteria and who are likely to comply with the best international and domestic customer service and efficiency standards.
• ➲ The same shall be screened by RBI after receiving an application to ensure prima facie eligibility of the applicants and referred to a high-level advisory committee to be set up by RBI
• ➲ The Committee must review applications according to the protocol they have set up.
• ➲ RBI will take the decision to grant in-principle approval for the establishment of a bank which will be final.
• ➲ The approval issued by RBI in principle is valid for a period of one year from the date of grant of the approval in principle and will then automatically lapse.
• ➲ After RBI has granted the approval in principle for the establishment of a bank in the private sector if any other features are subsequently noted with regard to the promoters or the companies/companies with which the promoters are affiliated and the community in which they are involved, the Reserve Bank of India may impose additional conditions and, if necessary, may withdraw the approval in principle

• After conversion, it will attract regulatory requirement such as maintain the CRR (cash reserve ratio), SLR (statutory liquidity ratio), etc
• Maintenance of minimum net worth will increase to 500 cr
• We will collect the necessary documents and information for FFMC Licence.
• After conversion banking regulation act 1949 and RBI compliances will be applicable
• There is a lot of cost of conversion, its an expensive process
• Conversion is a time taking process

An autonomous group of people belonging to the same class willingly comes together to strive to be common economic, social and cultural objectives and criteria through a business that is jointly owned and democratically controlled by such citizens.

Credit Co-Operative Society

An autonomous group of people belonging to the same class willingly come together to strive to be common economic, social and cultural objectives and criteria through a business that is jointly owned and democratically controlled by such citizens. It represents the society's willingness to help each other while maintaining the values of social responsibility and collective aid for the good of participants and income-generating is known as a credit cooperative society to be able to operate effectively over the long term.

Advantages of credit co-operative society

• ➲ Wellbeing is the primary motive of this group
• ➲ The credit cooperative societies have been influential in fostering economic welfare and a sense of self-sufficiency among the rural community and the less prosperous sections of society.
• ➲ Like banks and other financial institutions that strive at income development, cooperative societies align the unit's market longevity with the concept of genuinely helping members maintain financial stability.

Disadvantages

• ➲ Lengthy process of incorporation.
• ➲ Higher compliance requirements have to be fulfilled

Types of Co-operative Societies:

• ➲ Co-operative credit societies

  Agricultural credit societies

  Non- Agricultural credit societies

• ➲ Housing co-operative
• ➲ Consumer’s co-operative societies
• ➲ Marketing Co-operative societies
• ➲ Producer Co-operative
• ➲ Co-operative Farming societies

• ➲ Registered office address
• ➲ Minimum 7 board members
• ➲ Minimum 50 members
• ➲ Certificate form bank stating the credit balance in favour of the proposed society

➲ Set the objective of the society

• To assure a state of mutual help in the place of competition OR
• To render services to your members instead of making profits

• ➲ Get 10 Individuals together who are desirous of forming a Society.
• ➲ A chief Promoter should be elected to form the formed provisional committee.
• ➲ Select a Name for the Society.
• ➲ Made an application for registration to the Registration Authority for name reservation. The reserved name is valid for 3 months.
• ➲ The prospective members shall submit the entrance fee and share capital to proposed society.
• ➲ The proposed society should open a bank account in the proposed name as per the directions of the registration Authority. Collected entrance fees and share capital should be deposited in open account and the certificate from the bank has to be obtained in that respect.
• ➲ Fees of registration have to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained.
• ➲ For registration of the society application should be submitted to the Registrar of Societies of the concerned municipal ward. Following should be annexed with application:

  a. The required form A

  b. Signed form by 90% of the promoter members (in quadruplicate copies)

  c. Promoters and members List

  d. Certificate from Bank

  e. A detailed explanation of working of the society.

  f. Proposed bye-laws of the society (4 copies).

  g. Registration charges receipt (proof).

  h.Affidavits, indemnity bonds, any other documents specified by the Registrar also have to be submitted.

• ➲ Once registration is done the Registrar will enter the particulars in the register of application maintained in Form “B” and give the serial number and issue receipt in acknowledgement of the same.
• ➲ After registration, the Registrar will notify the registration of the Society in the Official Gazette and issue Registration Certificate.