FAQ:

Q-1. Is Nimble Credit Cooperative Society Ltd a registered Society? If so, what is the name of the registering body?

Ans-1. Nimble Credit Cooperative Society Ltd. (here in after called the ‘Society’) is a multi-state credit co-operative society, duly registered with the Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India, under the provisions of Section 7 of the Multi-State Co-operative Societies Act, 2002. It was registered on the 21st of December 2012 and its registration no. is MSCS/CR/705/2012 . The name of Nimble Credit Co-operative Society Ltd is listed in the list of multi-state co-operative societies that are registered with the Ministry of Agriculture and displayed at the website of Ministry of Agriculture. The registration certificate is available at the registered office of the Society,and copies of the registration certificate are available with the Branch Managers of the Society.

Q-2. Does the Society have a Memorandum and Articles of Association?

Ans-2. The Society has a set of ‘Byelaws’ which have been prepared in accordance with the provisions of the Multi-State Co-operative Societies Act, 2002 and the Multi-State Co-operative Societies Rules, 2002 and are duly registered with the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India. These ‘Byelaws’ serve as the Memorandum and Articles of Association of the Society.

Q-3. Where does the Society invest the money deposited with it by the Members?

Ans-3. The Society invests the money deposited with it by the Members in the various investment avenues prescribed by the Multi-State Co-operative Societies Act, 2002, and also invests in the cooperative well being of its Members by way of giving loans to its Members in keeping with its objects specified in its Byelaws.

Q-4. Is the return promised by the Society guaranteed?

Ans-4. Yes.

Q-5. What security mechanisms are in place to ensure the security of the ‘deposits’ of the Members?

Ans-5. The provisions of the Multi State Co-operative Societies Act/Rules 2002 and the Byelaws of the Society have adequate inbuilt mechanisms that impart security to the deposits of its members. It is important to note that neither is the Society a personal organization belonging to any individual, nor does it work for the benefit of a particular person. The Society belongs to its members and is run in a democratic manner by a Board of Directors elected by the Members and accountable to the Members. Besides, the accounts of the Society are also duly audit by an auditor appointed by the members in the AGM. Further security is provided by the constant monitoring of the activities of the Society by the Central Government, through the Central Registrar, Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India. Besides, the Society also maintains a Reserve Fund in accordance with the requirements of the Multi-State Co-operative Societies Act, 2002, to take care of unforeseen losses, if any.

Q-6. How can the Society offer comparatively higher rates of return?

Ans-6.

Reason 1

Interest income earned by the Society from various loans extended to its Members is exempt from income tax as per the provisions of Section 80P of the Income Tax Act. Part of the money so saved enables the Society to give higher rate of interest to its Member-depositors.

Reason 2

The Society is not required to maintain a Cash Reserve Ratio (CRR) of about 4 to 5 % of their respective deposits as the Banks and other Financial Institutions are required to do as per the RBI regulations in that regard. So unlike the Banks and Financial Institutions the Society has a greater percentage of its deposits to lend / invest, and therefore, to earn more. Part of this earning enables the Society to give higher rate of interest to its Member-depositors.

Reason 3

Banks are also required to deposit/ invest about 25 to 30% of their deposits (Statutory Liquidity Ratio – SLR) in certain specified securities that earn them lesser interests compared to the going market rate of interest. Society is exempt from this requirement. As such the Society continues to earn interest on market rates on its entire investments. Part of this earning enables the Society to give higher rate of interest to its Member- depositors.

Reason 4

Unlike the Banks and Financial Institutions, the Society’s track record of loan recovery from its Members is 100% as the loans given are fully secured. As such, there are no losses on account of bad unrecoverable loans. Part of this earning enables the Society to give higher rate of interest to its Member-depositors.

Reason 5

Last, but not the least, the Society has very low operational costs compared to those of the Banks and Financial Institutions. Part of this saving enables the Society to give higher rate of interest to its Member- depositors.

Q-7. Why is the membership of Society mandatory?

Ans-7. A co-operative society is formed only for the purposes of promoting the interests of its Members through self help and mutual aid in accordance with the co-operative principles. Our Society is a co-operative Society, and as such, the benefits of the various schemes, plans and activities of our Society cannot be made available to any person other than a Member of the Society. Therefore, until and unless a person becomes a Member of the Society he/she cannot avail the benefits of the various schemes of the Society.