Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a State, a Multi State Cooperative Society , not being a co-operative bank, may open branches or places of business in any place in India. Section 119 of the 2002 Act is corresponding to Section 108 of the 1984 There are following changes :( 1) Sub-section (1) of Section 108 of the 1984 Act has been re-numbered as Section 119 in the 2002 Act
(2) Sub-section (2) of Section 108 of the 1984 Act has been deleted, which was in respect to jurisdiction of the Registrar of the Co-operative Societies in such Sat tee where a multi-state opens branches or places of business.
Section 119 authorizes a multi state society to open its chess or places of business in any place in India. However, a cooperative society in Contributory Provident has not been provided with such a discretion. In view of the requirement for opening at least 25 per cent of the branches under ABEP in unbaked rural centers, it would now not be mandatory to open at least one third of the total number of branches proposed to be opened in Tier 3 to Tier 6 center in under banked districts of under banked States. Accordingly, authorization for branches in Tier 1 and Tier 2 centers will now factor in whether at least 25 percent of the total number of branches to be opened during a year are proposed to be opened in unbaked rural centers in place of the requirement that at least a third of branches to be opened in Tier 3 to Tier 6 centers are in under banked districts of under banked States. Domestic scheduled commercial banks (excluding regional rural banks [Ribs]) were permitted in December 2009 to Opening of branches of Multi State Cooperative Society in Tier 3 to Tier 6 centers (with population up to 49,999) without prior permission of the Reserve Bank. However, prior authorization from the Reserve Bank was required for opening of branches in Tier 1 and Tier 2 centers which was granted based, inter alias, on the List of National Cooperative Societies (I) number of branches opened in Tier 3 to Tier 6 centers under general permission; (ii) branches proposed to be opened in under-banked districts in under-banked States; and (iii) bank's performance in areas of financial inclusion and customer service. It was observed that on an average scheduled commercial banks (Scabs) opened about 20 per cent of the total number of new branches in rural center (Tier 5 and Tier 6) in the last two years.