Section 20
Liability of a co-operative bank to Deposit Insurance and Credit Guarantee Corporation.
The Multi-State Co-operative Societies Act, 2002
About this Act
An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operative s as peoples institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto.
Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative
bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee
Corporation Act, 1961 (47 of 1961), is amalgamated or reorganised and the Deposit Insurance
Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of
section 16 of that Act, the bank with which such insured bank is amalgamated or the new co-operative
bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be
under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and
in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act,
1961.