Co-operative Banks Act, 2007 (Act No. 40 of 2007)Chapter II : Registration, Constitution, Functions, Management and Auditor of Co-operative BankPart 2 : Constitution and functions of co-operative bank14. Banking services provided by co-operative bank |
| (1) | A primary savings co-operative bank may only provide, participate in or undertake the following banking services: |
| (a) | Solicit and accept deposits from its members; |
| (b) | open savings accounts for its members, in the name of each member, into which that member may deposit or withdraw money and from which that member may instruct the co-operative bank to transfer or pay money; |
| (c) | borrow money from the Agency and members, other than deposits referred to in paragraph (a), up to a percentage of the assets held by it as prescribed by the Minister; |
| (d) | open a savings account or cheque account in the name of that co-operative bank with any banking institution; |
| (e) | make, draw, accept, endorse, or negotiate negotiable instruments that are paid to the order of or made out and endorsed by that co-operative bank; |
| (f) | provide trust or custody services to members; |
| (g) | conduct any additional banking services as may be prescribed by the Minister; and |
| (h) | invest money deposited with it in investments prescribed by the Minister. |
| (2) | A primary savings and loans co-operative bank may only provide the following banking services: |
| (a) | Any of the banking services referred to in subsection (1); |
| (b) | grant secured and unsecured loans to members to a maximum aggregate value prescribed by the Minister; and |
| (c) | conduct any additional banking services and invest money deposited with it in any investments prescribed by the Minister, in addition to those prescribed under subsection (1). |
| (3) | A secondary co-operative bank may only provide the following banking services: |
| (a) | Any of the banking services referred to in subsection (2); |
| (b) | trading financial instruments on behalf of its members; |
| (c) | open an account with a bank registered under the Banks Act to facilitate foreign currency transactions; |
| (d) | conduct such additional banking services and invest money deposited with it in any investments prescribed by the Minister, in addition to those prescribed under subsections (1) and (2). |
| (4) | A tertiary co-operative bank may provide the following banking services: |
| (a) | Any of the banking services referred to in subsections (2) and (3); and |
| (b) | conduct such additional banking services and invest money deposited with it in any investments prescribed by the Minister, in addition to those prescribed under subsections (1), (2) and (3). |
| (5) | The Minister or Authority may prescribe the manner in which any of the banking services referred to in subsections (1), (2), (3) or (4) may be conducted, including, but not limited to, any fee, fine or charge that may be imposed on its members. |
| (6) | Section 45 of the Co-operatives Act does not apply to co-operative banks. |