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Corporate Laws Karnataka Ministry of Finance Karnataka Souharda Sahakari Act, 1997

Government of Karnataka - The Karnataka Souharda Sahakari (Amendment) Act, 2025

12-Sep-2025 | DPAL 51 SHASHANA 2025, BENGALURU

The Government of Karnataka has issued The Karnataka Souharda Sahakari (Amendment) Act, 2025, amending the provisions of The Karnataka Souharda Sahakari Act, 1997. Key Highlights: a. Insertion of new section 17-B regarding Maintenance of State Statutory Liquidity Reserve, which specifies that every Souharda cooperative must mandatorily maintain 20% of the total deposits held by it at the end of each co-operative year as State Statutory Liquidity Reserve as per section 18, except Souharda Cooperative Banks. b. Amended the provisions of section 18 specifying that funds that are not immediately required for use by a co-operative shall be invested outside the business with Karnataka State Co-operative Apex Bank Ltd. or District Central Co-operative Bank Ltd, Urban Co-operative Bank, and with any scheduled bank regulated by the Reserve Bank of India, with the prior permission of the Registrar. c. Amended the provisions of section 24(1), which now specifies the constitution of the Board with not less than thirteen members, excluding the Chief Executive, but not exceeding the number of members as may be prescribed. d. The requirement of quorum of the general meeting as specified in section 60(3A), has been reduced from 20% of the members to 10% of the members or one thousand, whichever is less. Kindly refer to the attached document for more information.

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