MEMBERSHIP

The Bank shall have following categories of members:

Ordinary Members.

• Active Members
• Non-active Members. 

ORDINARY MEMBER :

• Membership of the Bank shall open to all "Maharashtra State Government Employees" in Group 'A', 'B' and 'C' in the several departments, Offices, of Mantralaya and Allied Offices, having their offices in the Area of operation of the Bank.
• No person shall be admitted as an ordinary member of the Bank except the following namely:
  • An individual, competent to contract under section 11 of the Indian Contract Act, 1872,
  • Whose services are not transferable out of the Area of operation
• State Government.
• No employee of the Bank shall be eligible to become ordinary member of the Bank. Existing employee member shall cease to be a member with immediate effect.
• No co-operative society shall be eligible to become member of the bank. 

CONDITIONS FOR AN ORDINARY MEMBERSHIP :

• An applicant will be enrolled as an ordinary member upon fulfilling the following conditions if he :
  • Has applied in writing in the prescribed format. (Membership form)
  • Has paid admission fee of Rs.50/- or as may be stipulated by the Board of Directors from time to time and paid at least value of 10 shares of the Bank.
  • Has fulfilled all other conditions laid down in the Act, the Rules and the Bye-laws.
• The Board of Directors of the Bank approves his application to admit as a member.
• No person shall be eligible for admission as a member of the Bank if he :
  • Has not attained the age of 18 years,
  • Has been adjudged by a competent court to be an insolvent or an un discharged insolvent,
  • Has been sentenced for any offence, other than offence of a political character or an offence not involving moral turpitude and dishonesty and a period of 5 years has not elapsed from the date of expiry of the sentence.

RIGHTS AND DUTIES OF MEMBER :

• A member shall be entitled to exercise such rights as provided in the Act, Rules and bye-laws.
  • Provided that no member shall exercise the rights of member of a society, until he has made such payment to the society in respect of membership, or acquired such interest in the society as may be prescribed by the rules and the bye-laws of the society, from time to time. Provided further that, in case of increase in minimum contribution of member in share capital to exercise right of membership, the society shall give a due notice of demand to the members and give reasonable period to comply with.
• It is a duty of every member of a society-
  • to attend at least one general body meeting in the previous five consecutive years,
  • to utilize minimum level of services at least once in the previous five consecutive years as prescribed in the bye-laws, Provided that, a member who does not attend at least one meeting of the general body as above and does not utilize minimum level of services as prescribed in the bye-laws shall be classified as non-active member. The society shall communicate such classification as non-active member to the concerned member within 30 days from the date close of financial year. Provided further that, non-active member who does not attend one meeting of the general body and does not utilize minimum level of services as prescribed in the bye-laws, in next five years from the date of classification as non-active member. Such non-active member shall be liable for expulsion under section 35 of the Act. Provided also that a member classified as non-active member shall not be entitled to any concessional benefit from the society till the date of his re-classification as active member by the society. Provided also that, if a question of a member being active or non-active arises an appeal shall lie with the Registrar within 60 days from the date of communication of classification as non-active member. Provided also that, so far as the elections which will be conducted immediately after promulgation of this amendment Act, all the existing members of a society shall be eligible for voting, unless otherwise, they are not declared as ineligible to vote.

APPLICATION OF MEMBERSHIP AND IT’S DISPOSAL :

• The application for ordinary membership of the Bank shall be submitted by the applicant to the Chief Executive of the Bank in the prescribed form, accompanied by admission fee of Rs.50/-. An applicant shall also subscribe to at least 10 shares of Rs.100 fully paid, at the time of application.
• The application for membership of the Bank found complete in all respects shall be disposed of within a period of 90 days from the date of receipt of the application by the Bank and the same shall be communicated to the applicant within 60 days of the decision.

ACTIVE MEMBER :

“Active Member” means a person who has been admitted as an ‘Ordinary Member’ under the Bye-laws of the Bank and who complies following conditions:

• To attend at least one general body meeting in the previous five consecutive years,
• To utilize minimum level of services as provided in bye-law No.15 as follwing

MINIMUM LEVEL OF SERVICES FOR BECOMING ACTIVE MEMBER :

The minimum level of services to become active member are prescribed bellow such as :

• A member holding minimum share capital of Rs.1000/- and
• Minimum deposits of Rs.5000/- or Availed loan facility of Rs.50000/-.

Provison – I

Provided that a ‘Depositor’ means a ordinary member, who has been holding aggregate deposits (in all types of accounts) not less than the amount prescribed above for the continuous period of not less than one years in the Bank in his name.

Provison– II

Provided that a ‘Borrower’ means an ordinary member, who is enjoying any type of sanctioned and availed credit facility of the Bank.

RIGHTS OF ACTIVE MEMBER :

• Right to vote in the general election to the Board of the bank, however no member shall be permitted to vote by proxy.
• An active member can exercise all other rights of an ordinary member as mentioned in this Bye-laws.

VOTING RIGHTS FOR GENERAL ELECTION OF THE BANK

• Only active member shall have one vote irrespective of the number of shares held;
• Individual active member shall vote in person.
• Active member shall not be eligible to vote who has become defaulter as provided in Explanation to Clause (i) of sub Section (1) of section 73 CA.

LIABILITY OF A MEMBER :

The liability of a member shall be limited to the capital represented by the share or shares of which such member is the registered holder. The liability of a past member to the extent of shares as they existed at the time when he ceased to be a member, shall continue for a period of two years from the date of cessation. The estate of the deceased member shall remain liable to the extent of sums due to the bank for a period of two years.

IDENTIFICATION OF MEMBER (Applicability Of KYC Norms Of RBI to Members) :

For all transactions with the bank, identification of member is necessary. For Identification, the individual member shall comply with the Know Your Customer (K.Y.C.) guidelines issued by the Reserve Bank of India from time to time. The existing members shall also comply with such K.Y.C. norms. Identification of the member of the ‘Bank’ shall be done by an officer of the ‘Bank’ or a competent authority through the official Identity Card which will be issued free of charge for the first time by the ‘Bank’. Whenever a member desires to exercise his right as a member of the ‘Bank’ such as attending the General Body Meeting and Voting there for, collecting annual dividends and / or occasional gifts, execution of agreements as borrower or guarantor, voting at an election of director/s of the ‘Bank’ and for such other purpose which Bank may notify from time to time the member may be asked to produce his Identity Card. For the election purpose the voter shall produce any photo identification as prescribed by the election commission of India from time to time. When unable to produce such Identity Card on demand, his membership right whatsoever may be refused by the ‘Bank’ at that time. A Duplicate Identity Card may be obtained from the Bank’ in case of loss or mutilation of the original card. However, duplicate cards shall be issued at a nominal cost Rs.50/- as may be determined by the bank, from time to time. cost, as may be determined by the bank, from time to time. Note: In this bye-law Competent Authority means any person/s nominated by the ‘Bank’ for this purpose.

WITHDRAWAL AND RESIGNATION OF A MEMBER :

• A member may resign his membership after one year and giving at least one month notice in writing and withdraw his share capital with the approval of the Board of Directors. The approval shall not be given while such a member is indebted to the Bank either as a borrower or surety. During any co-operative year, the aggregate withdrawals shall not exceed 10% of the total Paid-Up Capital as at 31st March of the preceding year. The money refunded shall be as per the valuation of share or face value of the share whichever is less as on last preceding financial year.
• A member who withdraws his membership shall not be allowed to become a member again for a period of one year from the date of withdrawal of membership.

EXPULSION OF MEMBER :

• Expulsion of a member from the Bank shall be in accordance with the provisions of the Act and the Rules, by Resolution passed by a majority of not less than three-fourth of the members present and voting at a general / special meeting of members held for the purpose. Bank shall expel a member for the acts which are detrimental to the proper working of the Bank. 
• On approval from Registrar for expulsion the person will cease to be a member. Provided that the concerned member shall not be expelled unless he has given a reasonable opportunity of making representation in the matter as per Act and Rules.
• No member of the Bank, who has been expelled, shall be eligible for readmission as a member of the Bank for a period of one year the date of such expulsion.

CESSATION OF MEMBERSHIP :

Membership will cease :-

• On death of an individual member;
• On ceasing an employment of the Government of Maharashtra by virtue of resignation/ retirement or termination/ dismissal provided he is no indebted to the Bank. 
• On being adjudged as insolvent or legally disqualified from continuing as a member ;
• On resignation or withdrawal of membership having been accepted ;
• On expulsion from the Bank in accordance with the provisions of the Act and the Rules. Such expulsion may involve forfeiture of shares;
• On disqualification as per the provisions of the MCS Act, Rules & bye-laws;
• On exercise of right of lien by the bank;

NOMINATION :

A member may nominate a person to receive the member’s interest in the Bank after his death. Nomination shall be made in the prescribed form and entered in the register kept at the Bank’s registered office. Prior approval of the Board shall be necessary if the person to be nominated is an employee of the Bank. Nomination can be revoked and fresh nomination made any number of times after due intimation in writing to the Bank and on payment of Rs.50/- or prescribed fee as decided by the Board from time to time for every subsequent nomination.

DEATH OF A MEMBER :

On death of a member, the Bank may pay to the person or persons nominated a sum representing the value of the member’s interest in the Bank within 12 months from the death of the member. In the absence of nomination, the Bank may pay to such person or persons as may appear to the Board to be entitled to receive the same as heir or legal representative of the deceased member on his or their executing an appropriate deed of indemnity and on any other conditions as laid down by the Board.

LIABILITIES OF PAST MEMBERS AND ESTATE OF A DECEASED MEMBER :

• The liability of a past member or of the estate of a deceased member of the Bank for the debts due to the Bank as it existed.
  • In the case of a past member, on the date on which he ceased to be a member.
  • In the case of a deceased member, on the date of his death shall continue for a period of 2 years from such date.
• Where the Bank is ordered to be wound up under the Act, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within 2 years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the Bank as they existed on the date of cessation of membership or death, as the case may be.