CREDIT COUNCILS

(1) There shall be established a Department of Credit Councils.

(2) There may be appointed a Director of Credit Councils and such number of Deputy Directors and Assistant Directors of Credit Councils, and such other officers and servants as are necessary for the purposes of this Law.

(1) There shall be established for each Government department at least one Credit Council:

Provided that the Director of Credit Councils may where he considers it necessary and appropriate authorize the establishment of one Credit Council for more than one Government department.

(2) Every employee, other than a casual employee, of a Government department shall be a member of a Credit Council established for that department:

Provided, however, that it shall not be obligatory on an employee who is a member of any such body established for the purpose of granting credit facilities or relief in times of sickness or distress or other kinds of financial assistance to its members, as is approved for the purposes of this section by the Minister by Notification published in the Gazette, to become a member of any such Credit Council.

(1) The affairs of a Credit Council shall be administered by a Committee of Management consisting of a Chairman and not more than twenty-one representatives elected on the basis of five representatives for the first fifty members and one representative for each additional fifty members or part thereof:

Provided, however, that the Director of Credit Councils may nominate not more than three representatives to the Committee of Management if he is satisfied that any particular group or class of members of the Credit Council has not been represented in the Committee of Management.

(2) The head of the department or an officer of the department nominated by the head of the department shall be the Chairman of the Committee of Management of a Credit Council established for that department.

(a) to grant loans to members;

(b) to ensure that loans granted are limited to actual bona fide requirements of the members;

(c) to ensure the recovery of loans granted;

(d) to educate and assist members to live frugally and within their means ;

(e) to promote thrift and savings habits among members;

(f) to assist in the implementation of such policies and programmes connected with Credit Councils and their functions as may be determined by the Minister; and

(g) to assist in the rehabilitation of indebted members.

(1) There shall be a Central Fund administered by the Department of Credit Councils to which shall be credited the monthly contributions of the members of Credit Councils, and all moneys voted from the Consolidated Fund for the working of Credit Councils.

(2) The Department of Credit Councils may as and when necessary allocate moneys to the local funds from the Central Fund.

(1) Every Credit Council shall maintain a local fund to which shall be credited all moneys that may from time to time be allocated to it from the Central Fund for the purpose of granting loans to members and for other approved expenditure and investments, and the recoveries made from members on account of loans granted.

(2) The Department of Credit Councils may require that any sum of money lying to the credit of a local fund as is not required for the purposes of such fund be transferred to the Central Fund.

(1) Every member of a Credit Council shall pay to the Council a monthly contribution of such amount not exceeding one per centum of his monthly consolidated salary as may be prescribed subject, however, to a minimum monthly contribution of two rupees.

(2) Such contributions together with dividends thereon, if any, shall be refunded to such member or his legal representative on the cessation of employment of such member.

(1) The Department of Credit Councils shall cause accounts of the Central Fund to be kept regularly and shall cause the accounts of each year to be audited by the Auditor-General.

(2) The Auditor-General’s report shall, as soon as may be convenient, be placed before Parliament by the Minister.

(3) Every Credit Council shall cause accounts of the local funds to be kept regularly and audited annually by the Auditor-General.

(1) The Minister may make regulations for the purpose of carrying out or giving effect to the principles and provisions of this Law.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (I), the Minister may make regulations in respect of the following matters:-

(3) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(4) Every regulation made by the Minister shall, as soon as convenient after its publication in the Gazette, be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of disapproval but without prejudice to anything previously done thereunder. Notification of the date on which a regulation is deemed to be rescinded shall be published in the Gazette.