Employees' cooperative credit society is beneficial to salaried employees in any organization. Which can be created by most of the Government, public and private organizations. It is the voluntary association of permanent salary earners together for common economic needs and help without any profit motive. Mainly it is the type of non-agricultural credit co-operative society. The department of this societies which have to control the financial transactions by investigating the technicalities dictated by the cooperative department. It is registered to provide loans to employees at the local organizational level and a reasonable rate of interest. These societies have to work under highly competitive situations under the trends of globalization, liberalization, and privatization. These help to benefit of employees who get regular monthly salaries. Banks cannot sanction the loan without any mortgage.
Objective and research methodology: - The objective of this society is to understand the analytical outline of the controlling structure which have to regulate the employee cooperative credit society in Maharashtra.
Working structure: - The employee's co-operative credit society is to be organized into short-term and long-term structures. The short-term structure is to be based on a three-tier structure, expected by the state in the northeast region. The second tier is District Central Co-Operative Banks are to be organized at the district level. And the third and uppermost tier is the State Co-Operative Banks state level. The state co-operative credit society banks, in turn, advance loans to the co-operative credit bank to augment their capacity and to provide loans to the employees at the local organizational level of employee’s co-operative credit society.
Regulatory framework and employee co-operative credit society in Maharashtra: - regulatory framework is necessary for any financial institution the main aim of the regulation is to safeguard the interest of a large number of shareholders and depositors and to ensure the proper functioning of the financial institution which is part and parcel of the financial system. The Employee's Co-operative Credit Society plays an important role by providing financial help to the laborers, workers, and employees.
Registration U/S-4 to 8:- Such a Society must be registered under the MSC Act. This society is to be considered at least 10 persons who are qualified members under this Act.
Norms of membership: - The person is to be a permanent employee of the respective employer and should fulfill eligibility norms.
Restrictions on Shareholding Sec, 28: - The members can hold shares not exceeding 20% of the paid share capital.