(1) A co-operative society shall not make a loan to any person other than a member
Provided that with the general or special sanction of the Registrar, a co- operative society may make a loan to another co-operative society : Provided further that the co-operative bank shall make loans and advances as per directions of the Reserve Bank from time to time. (2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security. Section 58 - Restrictions on borrowings