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CONSTITUTION OF DEPOSIT GUARANTEE FUND

The Board as soon as may be after the coming in to force of this Scheme, shall constitute a fund for Societies by name “The Deposit Guarantee Fund”. The corpus of the fund shall be built up by contributions from the Societies except those which are defunct or dormant or which are under liquidation of this scheme at the rate of ten paise per every deposit of hundred rupees or parts there of outstanding at the end of each financial year.

The balance of funds, if any available with the District Cooperative Bank under the Scheme approved as per GO (P)No.162/2000/ shall be transfered to the corpus of the fund by the General Manager of the Bank on request of the board.

The initial Contribution of the Fund payable by societies shall be remitted either in lump or in two annual installments.

The initial Contribution to the Fund is to be made on the outstanding amount of deposits of Societies at the beginning of the financial year in which the scheme comes into force, Subsequent Contribution is to be made on the basis of the deposits outstanding at the end of each financial year. The Contribution shall be remitted in the account of the Board in the manner as may be provided by regulations framed by the Board.

Societies, shall remit the contribution to the fund within three months after the completion of a financial year calculated at the prescribed rate failing which the chief Executive of the Society shall be made liable to pay an interest for the defaulted contributions at the rate of 12 percent per annum till the payment made and the amount so paid will form part of fund. If the annual contributions due is not paid within the three months as mentioned above, the deposits of Society shall be excluded from the guarantee cover for the period of such delay.

No portion of contribution remitted shall be refunded to any society for any reason.

The Government may at their option, make contribution to the corpus of the fund, maximum to an extent to the total amount contributed by the member societies. All money belonging to the Fund shall be deposited in the accounts opened in the name of the Secretary/Treasurer of the Board, in the branches of the Kerala State Cooperative Bank or District Cooperative Bank concerned or in the Government Treasury.