An account has been opened by the Central Government in the State Bank of India and asked Multi State Cooperative Societies to credit one percent of their net profits towards the Cooperative Rehabilitation, Reconstruction and Development Fund.
The circular in this connection was issued to all the Multi-State Cooperative Societies (including banks) on 16th August 2023.
According to the Ministry of Cooperation circular, “As per section 63A of the Multi-State Cooperative Societies (Amendment) Act, 2023, the Central Government shall establish the Co-operative Rehabilitation, Reconstruction and Development Fund for revival of sick multi-State co-operative societies and there shall be credited to such Fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one per cent of the net profits of such multi-State co-operative society, whichever is less”,
“Accordingly, you are requested to take necessary action. This is issued with the approval of the Central Registrar of Cooperative Societies”, the circular reads.