Section 61. Restriction on loans.

(1) A co-operative society shall not make a loan to any person other than a member : 1[Provided that a Co-operative Society may make loans to other Co-operative Societies : Provided further that the Co-operative Credit Structure Society may take appropriate decision regarding its loan policies including individual loan decision keeping in view the interests of the Society and its members. (2) Notwithstanding anything contained in sub-section (1), a co-operative society may make loans to a depositor in the security of his deposits : 2[Provided a person who has become a member of a Primary Agricultural Credit Society, in terms of sub-section (8) of section 17 of this Act shall be eligible for loan in the same manner as other members of such Society]. 3[(3) A Primary Agricultural Credit Society shall abide by the prudential norms including capital to risk weighted assets ratio prescribed by the Registrar in consultation with the National Bank].